India: HDFC mortgage lender and HDFC Bank to merge

“The share exchange ratio for the merger of the Company with and into HDFC Bank will be 42 shares (credited as fully paid) with a par value of Re 1 (Rupee One) each of HDFC Bank for 25 shares fully paid-up. of face value of Rs 2 (Rupees Two) each of the Company,” HDFC said in a regulatory filing to the stock exchanges.

Board of Directors of both companies approved the merger.

HDFC Bank’s Board of Directors has also approved the execution of an implementation agreement between HDFC Limited and HDFC Bank (“Implementation Agreement”), which, among other things, sets out how to implement the contemplated transaction in framework of the plan, the representations and warranties given by each party and the rights and obligations of the respective parties in connection with the proposed transaction, HDFC Bank said.

In accordance with the Scheme, the date fixed for the merger of HDFC limited with and into HDFC Bank will be the effective date of the Scheme. In addition, the date fixed for the merger of HDFC Investments Limited and HDFC Holdings Limited with and into HDFC Limited will be the end of the day immediately preceding the effective date of the Scheme.

Michael J. Birnbaum