IDFC Bank, Capital First announce the merger; What’s in it for shareholders
IDFC Bank, which scrapped a deal to merge with Shriram City Union, announced its merger with the Mumbai-based Capital First, which has more than 5 million customers in retail and small and medium enterprises.
Shareholders in Capital First will receive 139 shares of the bank for every 10 shares held, the lender said in a stock exchange filing.
The deal is conditional on central bank and other regulatory approvals.
Shares of Capital First closed 0.05 per cent up at Rs 835.90
, while IDFC Bank settled 1.31 per cent down at Rs 67.65.
In July 2017, IDFC and Shriram group had entered into an agreement to merge but the two had differences over valuations.
Post-merger, the combined entity of IDFC Bank and Capital First will have an AUM of Rs 88,000 crores; PAT of Rs 1,268 crores (FY 17); and a distribution network comprising 194 branches (as per branch count of December 2017 of both entities), 353 dedicated BC outlets and over 9,100 micro ATM points, serving more than five million customers across the country.
Vaidyanathan, currently Chairman and MD of Capital First, will succeed Rajiv Lall as MD and CEO of the combined entity upon completion of the merger and necessary regulatory approvals.
Lall said: “We believe this merger will be transformational for IDFC Bank. It will bring two tech savvy, culturally aligned platforms to come together to create a diversified and fast growing universal bank with a national footprint, in a manner that will be value accretive for all shareholders. Vaidya has built a terrific franchise and team. He comes with a proven track record, the right experience and the leadership skills to firmly establish the combined entity amongst the highest echelons of Indian banking.”
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Via:: Economic Times – Stocks