The Hindu : Business : IDBI, IDBI Bank merger swap at 1:1.42

Online edition of India's National Newspaper
Friday, Jan 21, 2005

Business

Business

IDBI, IDBI Bank merger swap at 1:1.42

By Our Special Correspondent

MUMBAI, JAN. 20. The boards of IDBI and IDBI Bank today approved the scheme of amalgamation for the merger of IDBI Bank with IDBI and fixed the swap ratio at 1:1.42, that is, IDBI will issue 100 equity shares for 142 equity shares held by the shareholders in IDBI Bank.

"Pursuant to the scheme approved by the boards of both banks, IDBI will issue 100 equity shares for 142 equity shares held by the shareholders in IDBI Bank,'' a press release from IDBI stated. "IDBI will, for the benefit of the merged entity, transfer to a trust 2.5 per cent of the share capital and extinguish the balance shares held by it in IDBI Bank so that the Central Government's shareholding in IDBI will be 51.4 per cent, post merger,'' it added.

The appointed date for the merger has been fixed as October 1, 2004. The scheme, subject to approval by a resolution passed by a majority in number and representing two-thirds in value of the shareholders of each of the banking companies, namely, IDBI and IDBI Bank, will become effective on receipt of approval of the Reserve Bank of India. IDBI has convened an extraordinary general meeting on February 23 for seeking the approval of its shareholders in this regard.

Printer friendly page
Send this article to Friends by E-Mail

Business

News Update

Stories in this Section