Shareholders okay merger of Kotak-ING Vysya | business | Hindustan Times
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Shareholders okay merger of Kotak-ING Vysya

Private sector lender Kotak Mahindra Bank has secured shareholders’ approval for merger of Bangalore-based ING Vysya Bank with itself. In November, Kotak Mahindra Bank had announced the buyout of ING Vysya Bank in an all-stock deal valued at Rs 15,000 crore.

business Updated: Jan 08, 2015 23:47 IST
HT Correspondent

Private sector lender Kotak Mahindra Bank has secured shareholders’ approval for merger of Bangalore-based ING Vysya Bank with itself.

In November, Kotak Mahindra Bank had announced the buyout of ING Vysya Bank in an all-stock deal valued at Rs 15,000 crore. According to the deal, shareholders will receive 725 equity shares of Kotak Mahindra Bank for every 1,000 shares of ING Vysya Bank.

Shares of Kotak Mahindra Bank rose 5.5% to Rs 1,340.95 and ING Vysya Bank ended up 5.4% at Rs 925.80 on the BSE on Thursday.

“Kotak Mahindra Bank held its extraordinary general meeting on January 7 for seeking the approval of its shareholders for the scheme of amalgamation of ING Vysya Bank. The amalgamation was approved by 99.30% in number representing 99.93% in value of shareholders present,” the bank said in a statement.

Employees of ING Vysya Bank are opposing the merger and feel the bank should be merged with a public sector lender instead. They are demanding a tripartite agreement with Kotak Mahindra Bank.

The RBI and the Competition Commission of India are yet to clear the merger.