On Monday, India’s private sector lender HDFC Bank announces a merger with the mortgage lender Housing Development Finance Corporation (HDFC).
As per the terms of the deal, shareholders of HDFC Ltd will receive 42 shares of HDFC Bank for 25 shares held. Existing shareholders of HDFC Ltd will own 41 percent of HDFC Bank.
“The share exchange ratio for the amalgamation of the Corporation with and into HDFC Bank shall be 42 equity shares (credited as fully paid up) of the face value of $0.013 1 (Rupee One) each of HDFC Bank for every 25 fully paid-up equity shares of the face value of $0.026 (Rupees Two) each of the Corporation,” HDFC said in a regulatory filing to the stock exchanges.
The Board of Directors of the two companies has approved the merger.
The Board of Directors of HDFC Bank has also accorded approval for the execution of an implementation agreement between HDFC Limited and HDFC Bank (“Implementation Agreement”), which inter alia sets out the manner of implementing the Proposed Transaction contemplated under the Scheme, the representations and warranties being given by each party and the rights and obligations of the respective parties in relation to the Proposed Transaction, HDFC Bank said.
Therefore, as per the Scheme, the finalized date for the amalgamation of HDFC limited into HDFC Bank will be parallel to the Scheme’s date.
