RIL shares fall on news that government is seeking to block its deal with Saudi Aramco.
Shares of Reliance Industries Ltd (RIL) fell as much as 2.8% today, erasing about $2bn off its market value on reports that the government was seeking to block its deal with Saudi Aramco. Livemint
Previously: The government had filed a petition in the Delhi High Court seeking to block RIL's plans of selling a 20% stake in its oil-to-chemicals (O2C) business to Saudi Aramco. The deal valued the O2C business at $75bn and was part of the plan to make RIL a zero-debt company in the next 18 months.
Then, on Friday, the Court reportedly asked RIL and British Gas to disclose their assets. (Since 2010, the government has been fighting an arbitration with RIL and its partner, alleging that the companies appropriated huge sums of money in violation of the production sharing contract in the PMT oil and gas fields.)
Every Action Has a Reaction: In a counter affidavit submitted today, RIL said it was a ‘falsehood’ that the arbitration tribunal had passed an award requiring the company and its partners to pay $3.5bn to the government. It said the petition was an abuse of process as “it portrays that a sum of money is due and payable under the final award and purports to compute the money payable on a basis neither found in the arbitration award nor disclosed in the petition.” BS
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