Reliance Industries plans to fund its acquisition of the LyondellBasell Industries (LBI) by selling treasury stock and dipping into its cash reserves without taking any additional debt on its balance sheet, rating agency Crisil said on Tuesday while re-affirming its ‘stable’ rating on RIL’s debt.
Crisil said that Mukesh Ambani led firm had told it that, post-acquisition, LBI would have a conservative capital structure, with gross debt-to-equity ratio not exceeding 0.75 times. No additional support would be required from RIL, Crisil said.
The rating agency said its description of Reliance’s plans to finance the acquisition of LBI and the foreign company’s post-acquisition debt structure was based on its discussions with the management of India’s largest private sector company.
When contacted, RIL’s external spokesperson said the company had nothing more to add to its Saturday statement which said that it had submitted a non-binding all-cash preliminary offer to buy a controlling stake in LBI.
Source:http://www.indianoilandgas.com/viewnews.php?id=7752
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