Clix getting controlling stake after merger with LVB may have hurt deal

AION Capital-backed NBFC rues delays, missed opportunity in failed deal; sources say it was about to revise offer, but the Reserve Bank ran out of patience

AION Capital-backed non-banking financial company Clix Group was about to improve its initial offer for merging with Laxmi Vilas Bank (LVB). But, it was too late, because the move got derailed on Tuesday after the Reserve Bank of India (RBI) announced a draft deal for amalgamation of the financially stressed bank with DBS Bank.

However, the question remains: Why were the curtains pulled down on the Clix deal after six months of hectic, formal negotiations that navigated through many ups and downs, a new board, and the removal of the managing director?

After all, the LVB board had announced in