InvestorQ : Why does the government not want Reliance Industries to sell stake in the company to Saudi Aramco?
Priyanka N made post

Why does the government not want Reliance Industries to sell stake in the company to Saudi Aramco?

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NISHA Nayak answered.
3 years ago
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RIL will have to completely disclose its assets before it can finalize plans to sell 20% stake in its refining and petrochemicals business to Saudi Aramco. There is different reason for this and the government has not prevented RIL from selling its stake to Aramco of KSA. RIL and British Gas have to disclose their assets due to their failure to honour their payment under a $4.5 billion international arbitral award in the Panna-Mukta and Tapti production sharing contracts.

RIL had finalized deal to sell 20% stake in its refining and petrochemicals business in a $15 billion deal to Saudi Aramco. The deal had valued the oil-to-chemicals (O2C) business at an enterprise value of $75 billion. This will be the first step for RIL to monetize part of its properties and reduce its debt pile over the next year and half. Now this is likely to get stuck till RIL and its partner clear their dues of $4.5 billion with interest. This arbitration has been going on since 2010.
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