Shareholders of Kotak Mahindra Bank approve the merger of ING Vysya Bank at its extraordinary general meeting held at Mumbai on January 7th 2015.
Kotak Mahindra bank held its EGM for seeking the approval of its shareholders for the scheme of amalgamation of ING Vysya Bank Ltd. with Kotak Mahindra Bank Ltd, with a share exchange ratio of 725 equity shares of Kotak Mahindra Bank Ltd. for every 1,000 equity shares of ING Vysya Bank Ltd.
The amalgamation was approved by 99.30% in number representing 99.93% in value of the shareholders present.
The promoter family in Kotak Mahindra Bank holds about 40 per cent stake in the Kotak Mahindra Bank and the rest is held by the public. In ING Vysya Bank, Dutch lender ING Group owns about 43 per cent stake.
On 7th January 2015, ING Vysya Bank Limited also held its EGM for seeking approval of the shareholders for the scheme of Amalagamation of ING Vysya Bank Limited with Kotak Mahindra Bank Limited. The Amalagamation was approved by 89.04% of members present representing 96.86% of value.
Earlier on 20th November 2014, The Board of Directors of Kotak Mahindra Bank Ltd and the Board of Directors of ING Vysya Bank Ltd at their respective meetings approved an all-stock amalgamation of ING Vysya with Kotak.
It was pending for approval of the shareholders of Kotak and ING Vysya respectively, Reserve Bank of India under the Banking Regulation Act, the Competition Commission of India and such other regulatory approvals as may be required.
Now both banks have shareholder’s approval. The merger is now subject to the approval of Reserve Bank of India (RBI), Competition Commission of India (CCI) and such other approvals as may be required.
Upon obtaining all approvals, when the merger becomes effective, ING Vysya will merge with Kotak.
Commenting on the ING Vysya Bank’s EGM, Mr.Shailendra Bhandari, presently Managing Director and CEO said, “I am very pleased with today’s vote approving our pending merger and the continued confidence and support we’ve received from our shareholders. We are looking forward to completing the merger process and starting a new chapter, whichpaves the way for superior growth of the combined entity.”
Deputy CEO and CEO designate Mr. Uday Sareen said, “We are delighted that shareholders have shown overwhelming support by approving the transaction. We believe the merged entity will benefit our customers, employees and shareholders by enhancing our long-term value and competitive position.”