Financial Times

NDB–NBL share swap ratio at 1:5.6
By K. Kenthiran
Shareholders at NDB Bank Limited (NBL), are to be offered one equity share of the National Development Bank (NDB) for every 5.6 equity shares of NBL they own.

PriceWaterhouseCoopers Limited ( India), an independent firm advising NDB on the merger with its subsidiary, recommended to the board of directors of both banks of the share swap in the ratio of 1:5.6, according to their valuation.
Accordingly, the number of new shares of the NDB to be issued in lieu of the 4,610, 243 shares of NBL held by the existing shareholders of NBL (excluding NDB) is 823,258 shares.

The monetary board of the Central Bank has given its approval in principle to combine the business of NBL with that of the NDB. Upon transfer of the whole business and property of NBL to NDB, there would no longer be a reason for the continued existence of NBL. NDB Bank has called an extraordinary general meeting to be held on July 15, in order to voluntarily wind up NBL, to appoint SJMS Associates as the liquidator of the voluntary winding up and to empower the liquidator to proceed with the combination of the bank by making necessary arrangements.

The acquisition of the business of NBL by NDB and the resultant integration of operations would provide a number of synergetic gains to the combined entity.
The integrated bank has an ambitious branch expansion programme planned which would see the existing 13 NDB branches increase to 40 branches.

The group would significantly benefit from the expansions as the group companies would be able to improve the distribution of their existing products via a wider network and strengthened client base. The integration of two banks would facilitate the provision of a wider range of financial products.

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