Reliance Industries divests from Reliance Marcellus LLC; share trades flat

Reliance Marcellus, LLC (RMLLC), a wholly-owned subsidiary of Reliance Industries Limited (RIL) announced the signing of agreements on Thursday to divest all its interest in certain upstream assets in Marcellus shale play of south-western Pennsylvania.   

The assets are currently being operated by various affiliates of EQT Corporation. They have agreed to sell these assets to Northern Oil & Gas, Inc (NOG), a Delaware corporation, for a consideration of around Rs 1,800 crore cash & warrants, which would give entitlement to purchase 32.5 lakh common shares of NOG at an exercise price of $14.00 per share in the next 7 years.   

Both the companies (RMLLC and NOG) have signed a purchase & sale agreement (PSA) on February 3, 2021 while the transaction is subject to customary terms & conditions of closing. Citigroup Global Markets, Inc. acted as financial adviser to Reliance Industries Ltd while Gibson, Dunn & Crutcher LLP served as their legal counsel.  

On Thursday at 12.51 pm, the stock of Reliance Industries Ltd was trading at Rs 1,923.75, down by 0.34 per cent on BSE.