ICICI Bank approved the amalgamation of Bank of Rajasthan with it for a share exchange ratio of one share of ICICI Bank for every 4.72 shares of Bank of Rajasthan.
“The Board of Directors of ICICI Bank Ltd has at its meeting held in Mumbai today [on Sunday] granted its approval for the amalgamation of The Bank of Rajasthan Limited (Bank of Rajasthan) with ICICI Bank,” said a press statement from the ICICI Bank.
The proposed amalgamation is subject to the approval of shareholders of both banks and Reserve Bank of India.
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The Board considered the results of due diligence covering advances, investments, deposits, properties and branches and employee-related liabilities, and the valuation report of Haribhakti & Co., Chartered Accountants. “Haribhakti & Co. has recommended a share exchange ratio range of one share of ICICI Bank for 4.70-4.80 shares of Bank of Rajasthan.”
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The Board has approved a share exchange ratio of 25 shares of ICICI Bank for 118 shares of Bank of Rajasthan, which works out to one ICICI Bank share for every 4.72 Bank of Rajasthan shares, and falls within the range recommended by Haribhakti & Co, it added.
The proposed amalgamation will substantially enhance ICICI Bank's branch network, already the largest among Indian private sector banks, and especially strengthen its presence in northern and western India. It will combine Bank of Rajasthan's branch franchise with ICICI Bank's strong capital base, to enhance the ability of the merged entity to capitalise on the growth opportunities in the Indian economy.
JM Financial Consultants Private Limited and ICICI Securities Limited were the financial advisers to ICICI Bank on the proposed merger. Amarchand & Mangaldas & Suresh A. Shroff & Co. were the legal advisers to ICICI Bank.