Swan Energy to restructure Reliance Naval and Engineering board, stock up 3%
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As a result of the acquisition, the 73.76 crore existing equity shares of RNEL will be canceled and extinguished.
Swan Energy shares surged three percent in the morning trade on December 11 after its arm’s acquisition of Reliance Naval and Engineering (RNEL).
Swan Energy said in an exchange filing that its strategic partner, Hazel Mercantile, would acquire RNEL through a special purpose vehicle (SPV). The National Company Law Tribunal (NCLT) approved the monitoring company, paving the way for the constitution of a new board.
Swan Energy holds a 74 percent stake in the SPV, while Hazel Mercantile holds the other 26 percent.
At 9.17 am, Swan Energy was trading at Rs 475.05 on the National Stock Exchane, higher by 2.1 percent from the previous session’s closing price. Over the previous five sessions, the stock has surged 11.32 percent.
In a pre-open block deal window, 10 lakh shares exchanged hands at Rs 461 a share, amounting to Rs 4.61 crore. Moneycontrol could not immediately ascertain the buyers or the sellers.
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As a result of the acquisition, the 73.76 crore existing equity shares of RNEL will be canceled and extinguished. In exchange, 26.82 lakh shares will be allotted in the ratio of one fresh equity share for every 275 ordinary equity shares held.
The company added this includes “distribution of fractional proceeds to the eligible shareholders of RNEL and transfer of physical shares of eligible shareholders of RNEL to the Escrow demat account.” The SPV, Hazel Infra, will be allotted 5 crore shares.
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On October 27, Swan Energy paid Rs 231.42 crore towards the remaining payments of RNEL, completing the obligation laid down in the resolution plan of NCLT.
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