Kotak Mahindra Bank, India’s fourth largest in the banking sector is all set to acquire mid level player ING Vysya Bank in a mega banking deal which is all set to revolutionalise the sector drastically.
Kotak will acquire ING Vysya in an all share transaction through share swap. Kotak will be issuing 725 of its equity shares worth Rs 5 each for every 1,000 shares of Rs 10 each held in ING Vysya Bank.
The merger has to be approved by the shareholders of both companies and also needs Reserve Bank of India and Competition Commission of India (CCI)’s statutory nod. Kotak in a press statement announced that the merger will result in 15.2 percent of the equity share capital.
Uday Kotak EVC and MD of Kotak and Anand Mahindra, MD and Chairman of Mahindra Group are excited about the merger.