Reliance valuation to be complete in three weeks
Sunday, January 16 2005 14:52 Hrs (IST) - World Time - 
New Delhi:
The process of valuation of the Ambani business empire is likely to be completed within the next three weeks which could lay the basis for a blueprint to end the family feud that has hurt the Reliance group, sources familiar with the exercise said today (Jan 16, 2005).
ICICI Bank chairman and a friend of the Ambanis K V Kamath is doing the valuation following a family conclave in Mumbai on December 28 at which the feuding brothers RIL Chairman Mukesh Ambani and Vice-Chairman Anil Ambani were present along with their mother Kokilaben and their two sisters Dipti and Neena.
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Sources close to the Anil camp said that it was agreed at the meeting that Kamath would undertake valuation of the Reliance group estimated to be worth between Rs 90,000 crore and Rs 100,000 crore. Thereafter, a formula for "legal split" between the brothers would be worked out.
According to the sources, the understanding at the December 28 meeting was that valuation would be completed by the end of January, "give or take a few days". Thereafter, the family would get together to discuss roadmap for the split.
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The key to efforts of Kamath, whom both the brothers have met separately more than once since he began the exercise, lay in his valuation and whether any formulae emerge thereafter that are acceptable to all the concerned.
Even as process of valuation continues, all eyes are set on Board meetings of four group companies, including flagship RIL, next week amid indications that something more than single point agenda of financial performance during third quarter, as informed to stock exchanges, may be discussed.
The Board of Reliance Energy, headed by Anil, will meet on January 19 while that of Indian Petrochemcials Ltd, headed by Mukesh, and Reliance Capital would meet the next day. The Board of RIL, holding company of other group entities, will meet on January 21.
Asked about reasons for Anil resigning from IPCL as its Vice Chairman even as efforts were on to work out a settlement formula, sources said younger Ambani would continue to raise the issue of corporate governance in the interest of shareholders.
Although the agenda papers of the forthcoming meetings are yet to be circulated, it is almost certain that Anil's resignation would figure in at the meeting of IPCL, which has already informed the stock exchanges about the receipt of the resignation letter addressed to Chairman Mukesh Ambani.
Resigning from IPCL Board, Anil had questioned the role of Anand Jain, considered close to Mukesh, alleging that not only was he "conspiring to divide the family" but also had a conflict of interest as Director in the company and distribution of its products.
"It will be below my dignity and esteem to be on the same board as Anand Jain," Anil had said in his January 3 letter.
PTI
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