Mumbai, Dec. 9: The all-stock merger of Sangli Bank with ICICI Bank was today approved separately by the boards of the two entities.
Deloitte Haskins & Sells, the independent valuer appointed jointly by the banks, has recommended a swap ratio of 100 shares of ICICI Bank for 925 shares of Sangli Bank.
The proposed amalgamation is subject to regulatory approvals and will result in the issuance of approximately 3.45 million additional shares or 0.4 per cent of the equity share capital of ICICI Bank.
Based on the closing price of the ICICI Bank scrip (Rs 876.70) on the Bombay Stock Exchange yesterday, the total deal value will be around Rs 302 crore. According to ICICI Bank, the amalgamation is expected to be beneficial to the shareholders of both entities.
ICICI Bank will seek to leverage Sangli Bank’s network of over 190 branches and existing customer and employee base across urban and rural centres in the rollout of its rural and small enterprise banking operations.
The amalgamation would also supplement its urban distribution network and it would enable shareholders of Sangli Bank to participate in the growth of ICICI Bank’s strong domestic and international franchise. Further, the amalgamation will provide new opportunities to Sangli Bank’s employees, and give its customers access to ICICI Bank’s multi-channel network and wide range of products and services.