Reliance board member Aramco I US pension fund to vote against Aramco chairman for Reliance board

Yasir Al-Rumayyan, Governor of the Public Investment Fund (PIF) and Chairman of Saudi Aramco | Photo credit: Twitter

The California State Teachers’ Retirement Fund (CalSTRS) has decided to vote against the appointment of the chairman of Saudi Aramco as an independent director to the board of directors of Reliance Industries of Mukesh Ambani, BloombergQuint reported.

The US pension fund held 5.3 million fully and partially paid shares of Reliance Industries as of June 30, 2020, according to the latest information available on its website.

CalSTRS’s voting decision is based on the recommendation of U.S. voting advisory firm Glass Lewis, BloombergQuint reported on Friday.

Reliance, owned by billionaire Ambani, appointed Yasir Al-Rumayyan of Aramco as an independent director on July 19 as part of the process of formalizing a deal he made with the Saudi company to sell 20 % of its stake in its petroleum-to-chemicals business.

The shareholder voting process to confirm Al-Rumayyan’s appointment as an independent director, for a period of three years, will end on October 19.

Glass Lewis, who makes voting recommendations to more than 1,200 investors around the world, had recommended voting against Al-Rumayyan “based on the director’s status as an independent director” of RIL, the report added. .

Reliance, CalSTRS and Glass Lewis did not immediately respond to Reuters requests for comment.

The Indian conglomerate had announced the sale for $ 15 billion in 2019 to Aramco, the world’s largest oil exporting company, though the deal was stalled after the coronavirus crisis lowered oil prices and fuel demand.

Last month, Bloomberg News reported that a deal between Reliance and Aramco could be reached in the coming weeks. During Aramco’s earnings briefing in August, chief executive Amin Nasser said the company is still doing due diligence on the Reliance deal.

Al-Rumayyan has served as Chairman of the Board of Aramco and Governor of the Saudi Arabia Public Investment Fund since 2015.

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