6:50pm: Continuing his positive tone, Kotak said that the bank will leverage digital banking strength of ING Vysya Bank. Upon Merger, Kotak Mahindra Bank will have 1,214 branches. "The branch density is complementary in Mumbai and Delhi at 124 each," he added.
6:45pm: Speaking at a press briefing while announcing the contours of the merger, Uday Kotak said that this is a momentous occasion for Kotak, ING and the Indian financial sector. Upon merger ING will be the second largest shareholders and 17 Kotak subsidiaries will be subsidiaries of merged entity.
6:40pm: Uday Sareen will be inducted into top management of Kotak Mahindra Bank.
6:35pm: The swap ratio indicates price of Rs 790 for each ING Vysya Bank share. The proposed merger would result in issuance of approximately 15.2% of the equity share capital of the merged Kotak, the company said in a press release.
6: 30pm: Calling this buyout a very good deal, Keki Mistry, VC, HDFC told CNBC-TV18 that the valuation of the deal is good. Unlike Shial and Thorat, Mistry feels that merging cultures and fitting-in people into the Kotak Mahindra culture won't be a big challenge.
6:25pm: Chairman and managing director of Mahindra Group Anand Mahindra congratulated Uday Kotak on Twitter calling the deal a brilliant move.
6:18pm: “Strategically this is one the best acquisition Kotak could have done. However, if the valuations of the deal are a bit stretched then it may have some impact in the near-term,” Jignesh Shail of IDBI Capital Markets feels. He is also of the view that this deal could trigger a consolidation withing private sector banks.
6:15 pm: Former RBI Deputy Governor Usha Thorat feels that the biggest challenge for Kotak Mahindra Bank will be to merge the cultures of the two banks.
6:10pm: Executive Vice Chairman and Managing Director Uday Kotak has tweeted that he is excited to announce the merger of Kotak Mahindra Bank with ING Vyasa Bank and will work to create stakeholder value.
6:05pm: The board of Kotak Mahindra Bank has approved this merger for share-swap ratio of 725:1000. The face value of Kotak Mahindra Bank shares is Rs 5 and ING is Rs 10.
6:00 pm: The merger is subject to approval of shareholders, the Reserve Bank of India (RBI) and CCI.
5:55 pm: The bank says that the merger is not within purview of related party transactions.
5:50 pm: Kotak Mahindra Bank says that this deal leverages significant complementarities.
5: 45pm: Private sector lender Kotak Mahindra Bank announces merger with ING Vysya Bank in an all share transaction.
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