The merger process of the two Kerala-based private banks — Catholic Syrian bank (CSB) and the Federal Bank — is likely to materialise soon with a swap arrangement in the works.
Federal Bank has agreed to exchange 1.75 shares for one share of CSB and also expressed its readiness to meet the other demands, including protection to CSB employees. The Aluva-based Federal Bank has also offered the ‘best of both the banks’ to the employees of CSB in the event of a merger. Over 45 per cent of the CSB shareholders are reportedly in favour of the merger under the swap arrangement.
Federal Bank holds a 4.99 per cent stake in CSB, which it had bought from Thailand-based Surachan Chawla who had in 1994 bought a 38 per cent stake in the bank. Chawla now has a 27 per cent stake after a rights issue. There is a mutual understanding between him and Federal Bank to sell the remaining shares.
Federal Bank has agreed to exchange 1.75 shares for one share of CSB and also expressed its readiness to meet the other demands, including protection to CSB employees. The Aluva-based Federal Bank has also offered the ‘best of both the banks’ to the employees of CSB in the event of a merger. Over 45 per cent of the CSB shareholders are reportedly in favour of the merger under the swap arrangement.
Federal Bank holds a 4.99 per cent stake in CSB, which it had bought from Thailand-based Surachan Chawla who had in 1994 bought a 38 per cent stake in the bank. Chawla now has a 27 per cent stake after a rights issue. There is a mutual understanding between him and Federal Bank to sell the remaining shares.
No comments:
Post a Comment