Fri, 19 Jul 2019

Mumbai (Maharashtra) [India], Apr 17 (ANI): Japanese shipping major Mitsui OSK Lines (MOL) will acquire strategic stake in six group companies of Mukesh Ambani-led Reliance Industries Ltd (RIL), it was announced on Wednesday.

Reliance Ethane Holding Pte Ltd (REHPL), a wholly-owned subsidiary of RIL, has 100 per cent holding in six limited liability companies which own very large ethane carriers.

MOL of Japan and a strategic minority investor have signed binding definitive agreements for an investment in the six special purpose limited liability companies each owning a very large ethane carrier.

"The investment by MOL will deepen our relationship and ensure continued, safe and efficient operations of the very large ethane carriers," said RIL's Executive Director P M S Prasad.

"We welcome MOL as a strategic partner into the SPVs as they move beyond the current operator role to joint owner and operator role in the SPVs," he said in a statement without giving value of the deal.

MOL Executive Vice President Takeshi Hashimoto said the investment will enable the company to add six very large ethane carriers which it has been operating.

"We are. therefore, happy and look forward to using this strategic opportunity to be a joint owner and to significantly strengthen our existing relationship with Reliance," he said.

MOL has a fleet of over 850 vessels which include liquefied natural gas carriers, other tankers, dry bulkers, car carriers, ferries and coastal roll-on/roll-off ships and cruise ships.

After the transaction is closed following regulatory approvals, the SPVs will be jointly controlled by REHPL and MOL.

RIL is India's largest private sector company with a consolidated turnover of Rs 4.3 lakh crore. Its activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and digital services.

(ANI)

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