Mumbai, Feb. 25
Housing Development Finance Corporation (HDFC), the promoter company of HDFC Bank, will have to raise Rs 3,900 crore in order to maintain its stake at 23.28 per cent post the merger of the bank with the Centurion Bank of Punjab, said Mr Deepak Parekh, Chairman, HDFC.
HDFC’s stake will come down to 19 per cent post the merger.
“We will decide on the mode of raising the money in the next fortnight or within a month’s time,” said Mr Parekh. HDFC Bank would also consider making a preferential offer to HDFC to enable it to maintain its percentage shareholding in the merged entity.
Showing posts with label Mergers. Show all posts
Showing posts with label Mergers. Show all posts
Monday, February 25, 2008
HDFC Bank, Centurion boards approve 1:29 share swap ratio
Mumbai, Feb. 25
Shareholders of Centurion Bank of Punjab would be eligible to exchange 29 shares into one share of HDFC Bank. This follows the board of directors of the two banks approving on Monday a share-swap ratio of 1:29.
HDFC Bank’s share closed at Rs 1,422.70, down by 3.5 per cent while Centurion Bank ended the day at Rs 48.25, lower by 14.45 per cent on the BSE on Monday.
The entire process of the merger would take about four months for completion. The merged entity will be known as HDFC Bank. Mr Rana Talwar, Chairman of Centurion Bank, has been offered a seat on the Board as non-executive director and Mr Shailendra Bhandari, Managing Director, Centurion Bank, has been invited to join as the Executive Director on the board post merger.
Mr Aditya Puri, Managing Director, HDFC Bank, said that the merger will create a larger entity and bring together the strengths of both banks in terms of technology, products, distribution, manpower and experience.
Talking about the impact of the merger on the bank’s margin, Mr Puri said that the merger would not have any negative impact on the margin or the growth rate of HDFC Bank in the medium or long term.
Merger to be complete in 4 months; will leverage strengths in technology, products
Shareholders of Centurion Bank of Punjab would be eligible to exchange 29 shares into one share of HDFC Bank. This follows the board of directors of the two banks approving on Monday a share-swap ratio of 1:29.
HDFC Bank’s share closed at Rs 1,422.70, down by 3.5 per cent while Centurion Bank ended the day at Rs 48.25, lower by 14.45 per cent on the BSE on Monday.
The entire process of the merger would take about four months for completion. The merged entity will be known as HDFC Bank. Mr Rana Talwar, Chairman of Centurion Bank, has been offered a seat on the Board as non-executive director and Mr Shailendra Bhandari, Managing Director, Centurion Bank, has been invited to join as the Executive Director on the board post merger.
Mr Aditya Puri, Managing Director, HDFC Bank, said that the merger will create a larger entity and bring together the strengths of both banks in terms of technology, products, distribution, manpower and experience.
Talking about the impact of the merger on the bank’s margin, Mr Puri said that the merger would not have any negative impact on the margin or the growth rate of HDFC Bank in the medium or long term.
Merger to be complete in 4 months; will leverage strengths in technology, products
Saturday, February 23, 2008
Boards approve HDFC Bank and Centurion Bank of Punjab Merger
Mumbai, Feb. 23 The boards of HDFC Bank and Centurion Bank of Punjab have approved in principle a merger between the two banks.
In a joint statement, the banks said the merger will be subject to “satisfactory due diligence, a fair share-swap ratio, requisite statutory, regulatory and corporate approvals, including those from the Reserve Bank of India, the stock exchanges and shareholders of both banks.”
In a joint statement, the banks said the merger will be subject to “satisfactory due diligence, a fair share-swap ratio, requisite statutory, regulatory and corporate approvals, including those from the Reserve Bank of India, the stock exchanges and shareholders of both banks.”
Friday, February 22, 2008
HDFC Bank to consider merger with Centurion Saturday
Friday, February 22, 2008
HDFC Bank to consider merger with Centurion Saturday
The HDFC Bank announced that its board of directors will meet Saturday to consider a possible merger with the Centurion Bank of Punjab (CBoP).
This has been said in an official communique issued to the Bombay Stock Exchange (BSE) Friday evening by the HDFC Bank.
According to banking circles, the merger talks between the two entities have been doing the market buzz for the past six months. Unofficial estimates peg the value of CBoP's assets in the range of Rs.1,200 billion ($30 billion).
Once merged, the proposed new entity will rank below the ICICI Bank but above the Axis Bank, formerly known as the UTI Bank.
The merger is likely to be worked out on the share-swap deal on CBoP's current price of Rs.57 per share. HDFC Bank's share price closed today at Rs.1474.95, down by 4.40 per cent.
Frantic activity has been witnessed following a marathon meeting last Wednesday between HDFC Bank's Aditya Puri and CBoP chairman Rana Talwar along with chief executive Shailendra Bhandari.
The meeting gave rise to hectic media speculation, which boosted the CBoP's price by seven percent early Friday morning, but declined later during the intra-day fluctuations.(Indiaenews)
HDFC Bank to consider merger with Centurion Saturday
The HDFC Bank announced that its board of directors will meet Saturday to consider a possible merger with the Centurion Bank of Punjab (CBoP).
This has been said in an official communique issued to the Bombay Stock Exchange (BSE) Friday evening by the HDFC Bank.
According to banking circles, the merger talks between the two entities have been doing the market buzz for the past six months. Unofficial estimates peg the value of CBoP's assets in the range of Rs.1,200 billion ($30 billion).
Once merged, the proposed new entity will rank below the ICICI Bank but above the Axis Bank, formerly known as the UTI Bank.
The merger is likely to be worked out on the share-swap deal on CBoP's current price of Rs.57 per share. HDFC Bank's share price closed today at Rs.1474.95, down by 4.40 per cent.
Frantic activity has been witnessed following a marathon meeting last Wednesday between HDFC Bank's Aditya Puri and CBoP chairman Rana Talwar along with chief executive Shailendra Bhandari.
The meeting gave rise to hectic media speculation, which boosted the CBoP's price by seven percent early Friday morning, but declined later during the intra-day fluctuations.(Indiaenews)
Thursday, February 21, 2008
Centurion to Merge with HDFC Bank
22 Feb 2008 Economic Times page 1
Mr. Bhandari will join the board of the new bank. Rana Talwar is likely to be its nonexecutive chairman.
Mr. Bhandari will join the board of the new bank. Rana Talwar is likely to be its nonexecutive chairman.
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