The troubled Udaipur-based Bank of Rajasthan (BoR) today said it will seek shareholders approval for the proposed merger with ICICI Bank on June 21.
BoR will hold an extra-ordinary general meeting on June 21 to obtain the approval for the said amalgamation, the bank said in a filing to the Bombay Stock Exchange.
Earlier this week, the board of both the banks had decided in favour of amalgamation at an share exchange ratio of 25 shares of ICICI for every 118 shares of BoR. The proposed deal values BoR at about Rs 3,000 crore, but there would be no cash outgo.
Yesterday ICICI Bank also said that it would seek shareholders approval for the deal on the same date.
After shareholders' approval, both the banks would seek Reserve Bank clearance for the deal. Post-merger, the total business of ICICI Bank would cross Rs 4 lakh crore and there would be an increment of 25 per cent in branch network.
The BoR has 463 branches and amalgamation would push up the number of branches ICICI Bank to about 2,500.
Shares of BoR closed at Rs 162.60, up 0.31 per cent and ICICI Bank settled 1.06 per cent higher at Rs 856.60 on BSE, while the benchmark index rose 1.7 per cent.
