ICICI shareholders approve Sangli Bank merger scheme

Mumbai, Jan 21 | Updated: Jan 22 2007, 06:16am hrs
The shareholders of ICICI Bank has unanimously approved the scheme of amalgamation of the Sangli Bank with ICICI Bank.

This took place at ICICI Bank's extra-ordinary general meeting on January 20.

The amalgamation will now be subject to the approval of Reserve Bank of India (RBI) and such other statutory and regulatory authorities as may be required. The share exchange ratio has been set at 100 equity shares of the bank for every 925 equity shares of Sangli Bank.

ICICI Bank will be seeking approval of the Reserve Bank of India shortly.

The scheme will be effective from the date the RBI approves the scheme or such other date, as may be specified by the apex banks by an order in writing.

After the RBI accords its sanction to the scheme of amalgamation, the board of directors of ICICI Bank or a related committee will be setting a record date for determining the shareholders of Sangli Bank, who will be eligible for the shares of ICICI Bank in exchange of the shares of Sangli Bank.

Subject to the approval of the RBI, ICICI Bank is expected to issue 3.46 million equity shares of a face value of Rs 10 each against Sangli Banks 31.96 million equity shares of Rs 10 each. The new shares to be issued will be listed with the Bombay Stock Exchange and the National Stock Exchange.