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Kotak Mahindra Bank, ING Vysya Bank in focus on merger deal

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Last Updated : Nov 21 2014 | 12:19 PM IST

Kotak Mahindra Bank's board of directors at its meeting held yesterday, 20 November 2014, considered and granted its approval for the amalgamation of ING Vysya Bank with Kotak Mahindra Bank. The board has approved the share swap ratio of 725 equity share of Rs 5 each of Kotak Mahindra Bank for every 1000 equity shares of Rs 10 each held in ING Vysya Bank. Post-amalgamation, shareholders of ING Vysya Bank will receive shares of Kotak Mahindra Bank in the aforementioned ratio, resulting in change in shareholding of Kotak Mahindra Bank.

The proposed consolidation is founded on leveraging significant complementarities that exist between both the banks, particularly relating to branch network, product offerings and customer segments, Kotak Mahindra Bank said. This revenue synergy led and growth oriented amalgamation, adopting best practices of banking, governance and prudence from both banks, is expected to result in a superior platform benefitting from efficiencies of size and scope over time for all stakeholders such as shareholders, customers, and employees, Kotak Mahindra Bank said. The amalgamation does not fall within the purview of related party transactions, the bank added.

Meanwhile, the board of ING Vysya Bank approved the proposed amalgamation with Kotak Mahindra Bank. The board has approved the share swap ration of 725 equity share of Rs 5 each of Kotak Mahindra Bank for every 1000 equity shares of Rs 10 each held in ING Vysya Bank.

Tech Mahindra after market hours yesterday, 20 November 2014 said that it has signed a definitive agreement to acquire global network services, leader Lightbridge Communications Corporation (LCC) for an enterprise value of approximately $240 million, subject to regulatory approvals. The transaction is expected to close by Q4 of Tech Mahindra's 2015 fiscal year, the company said in a statement. Headquartered in McLean, Virginia, LCC is one of the world's largest independent global providers of Network Engineering services to the telecommunications industry, with more than 5,000 employees in over 50 countries.

NHPC after market hours yesterday, 20 November 2014 said that due to some fault in one of the GSU transformer of Unit 2 of Uri II power station, a fire has broken out in the power station on 20 November 2014. It has resulted in a thick blanket of smoke inside the power house. The power station has been immediately shutdown. All the operating staff came out safely, NHPC said. Fire fighting system/fire tenders have been mobilized from Srinagar & Uri I power station, the company added. People are not able to go inside the power house due to heavy smoke. Efforts are being made to control the fire by taking the help of fire department of J&K, NHPC said.

Yes Bank will be watched after the Reserve Bank of India (RBI) on Thursday, 20 November 2014, notified that the aggregate share holdings in Yes Bank by Foreign Institutional Investors (FII)/Registered Foreign Portfolios Investors (RFPI)/Non-Resident Indians (NRI)/Persons of Indian Origin (PIO) and through American Depository Receipts (ADR)/Global Depository Receipts (GDR)/Foreign Direct Investment (FDI) have gone below the prescribed threshold caution limit stipulated under the extant FDI policy. Hence the restrictions placed on the purchase of shares of the above bank are withdrawn with immediate effect. Equity shares of Yes Bank can now be purchased through primary market and stock exchanges, RBI said in a statement.

Public sector banks will be in focus after the Finance Minister Arun Jaitley on Thursday, 20 November 2014 reportedly asked the chiefs of these banks to increase the flow of credit to various sectors of the economy without being unduly conservative and firmly deal with the issue of rising non-performing assets (NPAs).

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Cox & Kings' Board of Directors of the company at its meeting held on 20 November 2014 decided to open the QIP issue and set floor price at Rs 309.18 per equity share. Pursuant to the intimation received from the promoters of the company dated 10 October 2014, the Board also decided to allot 72.50 lakh warrants to Standford Trading, a promoter group entity, on preferential basis subject to necessary approvals as may be required at a price that shall not be less than the QIP price.

Financial Technologies India (FTIL) shares will be focus after its founder and group chief executive officer Jignesh Shah on Thursday, 20 November 2014 stepped down from its board and gave up all executive and managerial positions.

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First Published: Nov 21 2014 | 8:44 AM IST

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