New Delhi: Kotak Mahindra Bank on Thursday announced acquisition of Bangalore-headquartered ING Vysya Bank in an all-share deal in which ING shareholders will get 725 shares of Kotak for every 1,000 shares.​
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“Post amalgamation, shareholders of ING Vysya Bank will receive shares of Kotak Mahindra Bank in the aforementioned ratio, resulting in change in share holding of the Kotak Mahindra Bank,” a statement from Kotak Mahindra Bank said.
Netherlands-based ING holds 42.73 %stake in ING Vysya Bank through two investment vehicles routed through Mauritius.
ING Vysya Bank shares closed 7.15% at Rs 814.20 per on the BSE ahead of the announcement which came after trading hours.
Kotak Mahindra Bank too jumped by 7.28 % to close at Rs 1,157.05 per unit at the BSE.
The statement further said: “this revenue synergy led and growth oriented amalgamation, adopting the best practices of the banking, governance and prudence from both banks is expected to result in a superior platform benefiting from efficiencies of size and scope over time for all shareholders, customers and employees.” “I am excited to announce the merger of Kotak Mahindra Bank and ING Vysya Bank.”
We will work to create stakeholder value,” Kotak Mahindra Bank managing director and vice-chairman Uday Kotak tweeted. Kotak Mahindra Bank was founded in 2004. It has 605 branches and 1,103 ATMs across the country. Bangalore-based ING Vysya Bank has about 677 branches.
Following the acquisition, Kotak Bank’s number of branches would more than double. This is Kotak Mahindra Bank’s first ever acquisition of any bank. The last merger in the banking space took place in 2010 when ICICI Bank amalgamated Bank of Rajasthan.