India: Mortgage lender HDFC and HDFC Bank to merge
Mortgage lender HDFC on Monday announced that it will merge with private lender HDFC Bank
Mumbai: India's largest private sector lender HDFC Bank will merge with mortgage lender Housing Development Finance Corporation (HDFC), the two companies announced on Monday.
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 per cent 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 face value of Re 1 (Rupee One) each of HDFC Bank for every 25 fully paid up equity shares of face value of Rs 2 (Rupees Two) each of the Corporation," HDFC said in a regulatory filing to the stock exchanges.
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.
As per the Scheme, the appointed date for the amalgamation of HDFC limited with and into HDFC Bank shall be the effective date of the Scheme. Further, the appointed date for amalgamation of HDFC Investments Limited and HDFC Holdings Limited with and into HDFC Limited shall be the end of the day immediately preceding the effective date of the Scheme.