ICICI Bank, Sangli Bank boards approve amalgamation proposal
11 Dec 2006
The amalgamation is subject to the approval of the shareholders of the ICICI Bank and Sangli Bank, Reserve Bank of India and such other approvals as may be required.
Deloitte Haskins & Sells, chartered accountants, the independent valuers appointed jointly by ICICI Bank and Sangli Bank, have recommended a share exchange ratio of 100 shares of the ICICI Bank for 925 shares of Sangli Bank. The proposed amalgamation would result in issuance of approximately additional 3.45 million shares of ICICI Bank, equivalent to about 0.4 per cent of its existing issued equity share capital.
The amalgamation is expected to be beneficial to the shareholders of both entities. ICICI Bank will seek to leverage Sangli Bank's network of over 190 branches and existing customer and employee base across urban and rural centres in the rollout of its rural and small enterprise banking operations, which are key focus areas for the bank. The amalgamation would also supplement the bank's urban distribution network.
The amalgamation would enable shareholders of Sangli Bank to participate in the growth of ICICI Bank's strong domestic and international franchise. The amalgamation will also provide new opportunities to Sangli Bank's employees, and give its customers access to ICICI Bank's multi-channel network and wide range of products and services, the bank said in a filing with the Bombay Stock Exchange (BSE).
