04 Jan , 2022 By : monika singh
NEW DELHI – Shares of Sterling and Wilson Renewable Energy climbed 2 per cent in Tuesday's trade after Reliance NSE 1.09 % New Energy Solar Ltd (RNESL), a wholly-owned subsidiary of Reliance Industries, became its promoter post payment of balance worth Rs 1,583 crore for acquisition of 25.90 per cent equity in it.
Sterling and Wilson’s share price rose to a high of Rs 394 as against the previous close of Rs 386 on the National Stock Exchange. Shares of Reliance Industries added as much as 0.6 per cent on the NSE.
The deal announced in October involved Reliance Industries’ wholly-owned arm Reliance New Energy Solar purchasing interest in SWREL from the Shapoorji Pallonji Group and making an open offer as per takeover regulations, reports said, adding that the Competition Commission of India (CCI) had recently cleared the deal.
With this transaction, RNESL and other group firms together hold over 40 per cent stake in SWREL, reports said.
Prior to this RNESL, Reliance Industries Ltd (RIL) and Reliance Ventures Ltd had made the initial payment of Rs 259 crore for the acquisition of 49,13,791 shares or a 25.90 per cent equity stake in the SWREL.
On December 30, 2021, the RNESL deposited an additional Rs 1,583 crore in the cash escrow account which together with the initial cash deposit of Rs 259.26 crore, "is equivalent to 100 per cent of the offer consideration payable under the open offer, assuming full acceptance of the open offer", reports quoted the company as saying in a statement.
The company further stated that the target company, after the receipt of shareholders' approval on November 2, 2021, fulfilment of other conditions precedents under the SSA and in accordance with the articles of association of the target company, issued and allotted the subscription shares to the acquirer on December 30, 2021.
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