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BW Businessworld

Shareholders Approve Kotak-ING Vysya Merger

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Kotak Mahindra Bank has secured its shareholders' approval for amalgamation 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.
 
The Extraordinary General Meeting of Kotak Mahindra Bank held on Wednesday approved a share exchange ratio of 725 equity shares of the bank for every 1,000 equity shares of ING Vysya Bank, both companies said in a filing to the BSE.
 
Following the merger, Kotak Mahindra Bank would become the fourth-largest private sector bank.
 
The amalgamation was approved by 99.30 per cent in number representing 99.93 per cent in value of the shareholders present, it said.
 
The approval came amidst protest from ING Vysya Bank employees.
 
The merger is subject to approval of the Reserve Bank, Competition Commission of India and other such approvals as may be required, it added.
 
Uday Kotak, executive vice-chairman and managing director of Kotak Mahindra Bank, believes the combined entity offers him an ideal growth platform.
 
Kotak with 641 branches has a better footprint in the west and the north of India. Very different to that of ING Vysya, whose 573 branches are largely concentrated in south India, particularly in Andhra, Telangana and Karnataka.
 
Besides, the latter’s clientele cuts across segments; it is known for its SME business and links to several large global corporates, thanks to the Netherlands-based ING Group.
 
"We have about 10,000 employees and we are committed to ensuring that the combined employee strength remains our force. We also want to ensure that all employees are treated fairly. There are challenges, but if we approach them in a fair and transparent manner, they can be an advantage," Kotak, executive vice-chairman and managing director of Kotak Mahindra Bank, told to BW | Businessworld in December.