Ambani brothers reach settlement

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TheBroker

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At Last something good in store for the huge family of over 3.5 million stcok holders of RIL and other companies affiliated to RIL

Saturday, June 18, 2005 (Mumbai):

The nearly seven-month acrimonious battle over ownership issue in the Reliance Group finally came to an end today after both Ambani brothers reached an "amicable" settlement.

The important announcement of the settlement was made through a letter by their mother Kokilaben this morning.

In a statement she said, "I have today amicably resolved the issues between my two sons, Mukesh and Anil, keeping in mind the proud legacy of my husband Dhirubhai Ambani."

Finer details

Under the agreement, Mukesh will retain flagship company RIL and its petrochemcial venture IPCL while Anil will get Reliance Infocomm, Reliance Energy and Reliance Capital.

"Mukesh will have responsibility for RIL and IPCL while Anil will have responsibility for Reliance Infocomm, Reliance Energy and Reliance Capital," Kokilaben said.

The statement followed a marathon night-long family meeting to hammer out the settlement.

In addition, she expressed confidence that her sons would uphold their father's values and his foresight and vision would guide them.

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How can they compete aginst each other??? They do not have the same industries. Anil has a totally different business from Mukesh.
 
bottomline......mukesh will also pay 7000crore in cash to anil........................btw.....kahi main dhirubhai ka tesra beta toh nahi?????????????????
 
magnet said:
bottomline......mukesh will also pay 7000crore in cash to anil........................btw.....kahi main dhirubhai ka tesra beta toh nahi?????????????????
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But u see Mukesh has the industries which have more long term profitability......so u see mukeshis making a fortune for himself if u look d other way :eek:hyeah: :eek:hyeah:and by giving this to Anil he will silence Anil permanenty... Anil will not have the bargaining power later :no: :no: if Mukesh's industries make more profit than Anils
 
But it was expected. Mukesh being the elder bro had to have a bigger share of the pie.....

And the net value of Mukesh's part is around 87,000 Crore Rs. Anil's is around 14,000 Crore Rs.

See the massive difference. Even 7000 Crore will not make it up.

but see it another way..... this 7000 Crore is only to make sure that the brothers get a more or less equal share of the Ambani wealth. It is in no way related to the companies. So, this 7000 Crore is for Anil to enjoy life with. Almost 2 BILLION $ .

The interest on that is 3.5 Crore per year. At 5 % interest rate.

He can live off the interest while keeping the capital intact for his kids. And plus, his companies are going to contiunue to make more and more money.

But Mukesh does not have any such option. He gets the companies only. Not cold hard cash.

I know I know...... his companies epecially RIL will make more money than what Anil will get but then they both have waaaaaay too much money to spend in a million lifetimes. Even I will not be able to spend the combined wealth of the ambanis. And trust me. I have the most out of the world fantasies.....
 
Nikhil said:
But it was expected. Mukesh being the elder bro had to have a bigger share of the pie.....
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Now that is just unfair....just becoz he is older doesnt mean he is cleverer (or clever enough) to get a bigger share....
 
BTW how many saw Anil's Press meet held 2day.........he was quite his usual bubbly(not the pepsi :p) energetic self.........he sure is a gutsy man ...also he didnt bad mouth Mukesh in anyway.This shows his composure.He is a man of character :D:D:D...Hats off to him :eek:hyeah::eek:hyeah:
 
i dont know how u ppl saying 14000 crore in anil side.........i heard frm star news he getting 54000crore property.......but the biggest prob he faces r all the companies involved in legal hassles go with anil........infocom not listed....and also paid penalaties for misleading trai.........and so r with others..........also that cash which i mentioned wont b hard cash.....some cash coupon thing will b issued to anil.......and for that think to happen another 6-8 months will go(7000 ko ginna ko time lagta hain).....................................well in that press meet his body language showed he looked little worried...keeping on moving here and there and avoiding questions on infocom
 
The deatils are like this. As of now market cap of Mukesh's part is around 87,000Crore. Anil's is 14,000 Crore.

But this is without including Reliance infocomm. Once Reliance Infocomm goes public, it could be worth as much as 50,000 Crore. So, that pushes up Anil's part of Reliance to 14,000 + 50,000 = 64,000 Crore. And he is getting 20,000 Crore Rs settlement to part with his part of RIL .

So, you see, in the end it is equal.

Now upto the two brothers to build up each empire as they wish......
 
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