ICICI Bank Board approves proposal for amalgamation of Sangli Bank Ltd

ICICI Bank Ltd has announced that the Board of Directors of the Bank and the Board of Directors of The Sangli Bank Ltd (Sangli Bank) at their respective meetings held on December 09, 2006, have approved an all-stock amalgamation of Sangli Bank with the Bank. The amalgamation is subject to the approval of the shareholders of the 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 the Bank and Sangli Bank, have recommended a share exchange ratio of 100 shares of the Bank for 925 shares of Sangli Bank. The proposed amalgamation would result in issuance of approximately additional 3.45 million shares of the Bank, equivalent to about 0.4% of its existing issued equity share capital.

The proposed amalgamation is expected to be beneficial to the shareholders of both entities. The 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 the 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 the Bank’s multi-channel network and wide range of products and services.

Source : Equity Bulls

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