Cash-starved private sector lender Lakshmi Vilas Bank Ltd. (LVB) has received a non-binding offer from Clix Group for merger.
In June 2020, LVB had entered into a non-binding agreement with the Clix Group for amalgamation. On Thursday, LVB said that it had received an indicative non-binding offer from Clix Group indicating that the merger was on.
The fate of LVB merger talks have been doing rounds for the last few days, as the bank shareholders rejected the appointment of seven directors including its chief executive officer at the recently concluded Annual General Meeting due to poor results.
“Three or four options are before us to decide the best way forward,” said Shakti Sinha, independent director and member, Committee of Directors. “The board will take a final decision about the merger in the next 3-4 days.”“We are simultaneously working on parallel tracks. A process has started with Clix and we will come to a conclusion either way in the interests of the bank. Besides, we will raise funds either through rights issue, follow-on IPO, FPO or QIP and we are also exploring all the other options. As there are none in the executive position, we have to tread cautiously,” he said.
During June 2020, LVB had entered into a non-binding agreement with the Clix Group for amalgamation. And on Thursday, LVB said that it received an indicative non-binding offer from Clix Group indicating that the merger was on.
Mr. Sinha said that they need at least ₹2,500 crore to keep afloat and grow the business. The bank was mulling to raise ₹1,000 crore through merger, debt financing of ₹500 crore and balance ₹1,000 crore by selling its non-performing assets to Asset Reconstruction Companies.
