Taking ahead the growing trend of consolidation in the financial sector a step further, Chennai-based Lakshmi Vilas Bank (LVB) will merge with Gurugram based Indiabulls Housing Finance Ltd, one of the fastest growing mortgage lender, in an all share-swap deal.
In the proposed deal, the shareholders of LVB will get 14 shares of Indiabulls Housing Finance Ltd (IBHFL) for every 100 equity shares held in the bank.
The deal implies a 36% premium to the closing price of LVB on April 5, 2019 and 63% premium to the bank's last six months' average price. The merged entity would have a net worth of Rs 19,472 crore and a loan book of Rs 1.23 lakh crore as of December 2008. Also, the entity's capital adequacy ratio will be 20.6%. At present, IBHFL's market capitalisation is 13 times that of LVB. The merger is expected to take 6 to 12 months as it would require regulatory approvals from RBI, National Housing Bank, CCI, SEBI and NCLT. The new entity would likely to be headed by Sameer Gehlaut, the current chairman of IBHFL He would be designated as vicechairman. Parthasarathi Mukherjee, current MD of the bank will become the joint managing director.
The merger comes at a time when nonbanking finance companies (NBFCs), especially housing finance companies, are facing liquidity issues and slowdown in loan disbursement. The proposed deal will be the fourth consolidation between a bank and a NBFC in the last one-and-half year. In October 2017, IndusInd Bank had announced it would merge Bharat Financial Inclusion with itself. The deal is likely to be completed shortly. Also, in January last year IDFC bank announced that it will acquire non-banking finance company Capital First. The final amalgamation was done in December last year. And three months ago Bandhan Bank announced merger of Gruh Finance (a housing finance company) with itself. The deal has now received regulatory approval from Reserve Bank of India (RBI). Also, on a slightly different note, the three state-owned banks – Bank of Baroda, Vijaya Bank and Dena Bank – completed their merger this month.
Win-win for both
Diese Geschichte stammt aus der May 2019-Ausgabe von M & A Critique.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent ? Anmelden
Diese Geschichte stammt aus der May 2019-Ausgabe von M & A Critique.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
STRATEGIC MERGER SHALL CATAPAULT ASTER DM AS THE 3rd LARGEST HOSPITAL CHAIN IN INDIA
\"The resulting merged listed entity will be called Aster DM Quality Care Limited\"
STAMP DUTY EXEMPTION ON TRANSFER OF SHARES AS PART OF MERGER OF SUBSIDIARIES
A Writ Petition was filed by Ambuja Cements Limited (hereinafter \"the Petitioner\" or \"ACL\"), challenging the imposition of stamp duty on a merger order under Article 23 of Schedule IA of the Indian Stamp Act, 1899 by Collector of Stamps, Delhi (hereinafter \"Respondent\").
Acquisition of Plastic Injected Moulding Business from Sundaram Auto helps Pricol Group to a leadership position in Auto Component Sector
Recently, Sundaram Auto Components Limited, a wholly owned subsidiary of TVS Motor Company Limited approved the sale of its injection moulded plastic component solutions division to Pricol Precision Products Private Limited, a wholly owned subsidiary of Pricol Limited, as a going concern on a slump sale basis.
Simplifying the Corporate Structure - Merger of Inox Leasing and Financing with Gujarat Fluorochemicals
The board of Directors of some of Inox group entities have approved a Composite Scheme of Arrangement which provides for first demerger of Wind business of Inox Leasing and Finance Limited being a promoter group entity into Inox Holdings and Investments Limited and subsequently, merger of remaining Inox Leasing and Finance Limited into Gujarat Fluorochemicals Limited to provide direct holding of listed company to the promoters.
Cement Sector Consolidation Continues: Orient Cement to be acquired by Adani Group's Ambuja Cement
The shopping spree for the Adani group seems to be unstoppable. Recently, Adani group announced yet another acquisition in the cement space. This time it is Orient Cement Limited.
ITAT held that the reserve created on amalgamation is capital in nature and not taxable as perquisite
Recently, the Income Tax Appellate Tribunal, Mumbai held that the reserve created on amalgamation is capital in nature and not taxable as perquisite.
Mega Consolidation: SeQuent Scientific and Viyash Lifesciences backed by PE Carlyle Group
SeQuent Scientific Limited announced a merger which is expected to create a unique & differentiated platform with leading market position in Animal healthcare segment.
Raymond Group continues Segregation of its Business Verticals
After successful demerger of \"Lifestyle Business,\" Raymond Limited announced yet another restructuring to unlock further value for stakeholders.
Ultratech Cements adds India Cement in its shopping cart
India's Cement Industry is poised for consolidation. In recent past we have seen multiple large & small acquisitions in cement segment for consolidating positions.
Valor Estate Limited: "Diversification" to "Sepration" of Hospitality Business
“From investments in hospitality business, the demerger transaction will enable VEL to start its construction in hospitality”
