RIL raises offer for LyondellBasell by $5-6 billion: report
26 December 2009
Reliance Industries (RIL) has revised its non-binding proposal for LyondellBasell, according to a CNBC-TV18 report. The new offer has a significantly higher cash component of $5-6 billion against the earlier $2 billion, the report said quoting unnamed sources.
RIL had earlier offered about $12 billion in a non-binding proposal that had a cash component of about $2 billion.
The revised RIL proposal has a cash component of nearly $5-6 billion, which will then be significantly higher than what the Apollo Group has committed, the reports said.
RIL, the report said, is also simultaneously gaining support from the LB's unsecured lenders.
LyondellBasell, one of the largest petrochemical companies in the world, has among other things, reached an agreement with substantial holders of the senior and bridge debt to convert around $18 billion of senior and bridge debt into common equity under a creditor-supported reorganisation plan.
Under the Equity Commitment Agreement (ECA), a group consisting of an affiliate of Apollo Management VII, an affiliate of Access Industries and Ares Corporate Opportunities Fund III will back the equity rights offering by purchasing any shares of common stock not subscribed for by certain senior creditors as part of the rights offering.