ING Vysya Bank is merged with Kotak Mahindra Bank through an all stock transaction worth over $2.4 billion and becomes the fourth largest private sector bank in the country (behind ICICI Bank, HDFC Bank and Axis Bank).
The merger would result in issuance of approximately 15.2 per cent of the equity share capital of the merged Kotak.
Under the deal, shareholders of ING Vysya will get shares of Kotak Mahindra Bank as per the swap ratio of 725 shares of Kotak for every 1,000 shares held by them in ING Vysya.
The merged firm would have 1,214 branches, 1,794 ATMs points, 39,811 employees, total income (based on FY14 numbers) of Rs 13,576 crore and PAT of Rs 3,123 crore; total asset of Rs 1,98,983 crore with advances of Rs 1,20,976 crore and deposits worth Rs 1,10,963 crore.
The transaction is expected to be completed by April 1 2015, after which Kotak Mahindra Bank’s promoter holding will fall from 40 per cent to 34 per cent; ING Vysya Bank’s promoters will be second-largest shareholder in the combined entity, with a 6.5 per cent stake.
Shares of Kotak Mahindra Bank and ING Vysya Bank surged over 7 per cent in a strong Mumbai market.
The Executive Vice Chairman and Managing Director of Kotak is Mr. Uday S Kotak.