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The Board of Directors of ICICI Bank on Sunday granted approval
for the merger of Bank of Rajasthan (BoR) with itself on a swap
ratio of 1:4.72 shares.
In effect, the board of NYSE listed ICICI Bank at its meeting
held this day approved a share exchange ratio range of 25 shares of
ICICI Bank for 118 shares of Bank of Rajasthan, which works out to
a simple ratio of 1:4.72 and falls within t
he range recommended by chartered accountant company, Haribhakti
& Co. The Tayal family, however, promoters of BoR had hoped for
a ratio of 1:3 shares. However, the proposed merger is subject to
the approval of shareholders of both banks as well as the Reserve
Bank of India (RBI). The ICICI Bank board considered the results
covering advances, investments, deposits, properties and branches
and employee-related liabilities, and the valuation report of
Haribhakti & Co, prior to recommending the above share swap
ratio.
The proposed merger seeks to enhance ICICI Banks branch network
already the largest among Indian private sector banks especially
its presence in northern and western India. It would combine as
much as 463 branches of BoRs branch franchise with ICICI Banks
strong capital base, to enhance the ability of the merged entity
to
capitalise on the growth opportunities in the Indian
economy.
JM Financial Consultants and ICICI Securities were the financial
advisers to ICICI Bank on the proposed merger, while Amarchand
& Mangaldas & Suresh A Shroff &Co were the legal
advisers.DH News Service
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ICICI Bank Ltd, India's largest private sector bank, welcomes
all existing customers of Bank of Rajasthan (BoR).The Reserve Bank
of India approved the merger ofBank of Rajasthan with ICICI Bank
Ltd, India's largest private sector Bank. Allbranches of Bank of
Rajasthan will function as branches of ICICI Bank. The boar
ds of both the banks on May 23, 2010 approved the merger for a
share exchange ratio of 25 shares of ICICI Bank for 118 shares of
Bank of Rajasthan.
All customers will be extended seamless services as per existing
Bank of Rajasthan procedures. All existing BoR products will
continue with current features andcharges. Customers can continue
to transact using their current BoR cheque book
s, ATM cards, lockers etc. The minimum balance requirements and
service chargeson all type of accounts will remain unchanged.
Post the system integration customers can benefit from ICICI
Bank's enhanced branch network of over 2500 branches and over 5600
ATMs spread across 1400 locations in the country. The Bank has a
presence in 18 international locations. ICICI Bank's extensive
product suite caters to all banking requirements, both corporateand
retail, backed by a world class technology platform.
