The Hindu Business Line : Mukesh, Anil agree on 5-yr `non-compete' clause<br>Settlement expected `any time'

THE settlement between Mr Mukesh Ambani and Mr Anil Ambani is likely to happen before the anticipated date of July 6, as the two brothers are ready with the draft pending last-mile modalities involving tax experts.

A formal announcement is now expected within 10 days, and Mr Anil Ambani is expected to assume management control of Reliance Infocomm, currently under the wings of his elder brother, by the month-end.

According to sources, the two brothers have also agreed upon a non-compete clause for the next five years, which would mean that they would not step into each other's business domain in the near future.

Earlier, media reports had speculated that July 6, the death anniversary of Dhirubhai Ambani, would be the date when a settlement between the two warring siblings would be announced.

As already reported, the elder brother will keep the flagship Reliance Industries Ltd (RIL) and IPCL, while Mr Anil Ambani would assume charge of Reliance Infocomm, Reliance Energy, and Reliance Capital.

"The family is getting ready for an announcement any time, and it may not prolong into next month," the sources said.

They added that the two brothers have had direct interactions in recent days and their mother, Ms Kokilaben Ambani, has been kept posted.

Meanwhile, the cash payout to the younger Ambani, which is critical to the settlement, has been pegged at Rs 4,000-5,000 crore, significantly lower than the initially estimated figures of Rs 8,000-10,000 crore.

Sources close to Mr Mukesh Ambani said that he would raise the requisite funds from personal resources.

There is no clarity on the individual valuation of the group companies, though sources said that the valuation done by Mr Nimesh Kampani was based on short- to medium-term projections.

Sources said that Mr Mukesh Ambani holds approximately 50 per cent stake in Reliance Infocomm, which was touted as his pet project, 16 per cent in Reliance Energy, and eight per cent in Reliance Capital.

The Ambani family led by the Chairman, Mr Mukesh Ambani, controls voting rights for roughly 43 per cent stake in RIL even as the equity is structured in a way that economic benefits from only 29 per cent holding will flow into the family.

Hence, deciding the exact quantum of individual holding in RIL, including that of the younger Ambani, has been another vexatious issue that has been dealt with by the mediators.

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