Shareholders of ING Vysya Bank approved its merger with Kotak Mahindra Bank in an extraordinary general meeting convened on Wednesday. Kotak Mahindra Bank had announced the buyout of ING Vysya Bank in November 2014 in a Rs. 15,000-crore deal.
The shareholder of Kotak Mahindra Bank also approved the amalgamation in a meeting on Wednesday. With the approval from the shareholders of both banks, decks have been cleared for a merger. Kotak Mahindra Bank and ING Vysya Bank informed stock exchanges – BSE and NSE separately on Thursday about the approval from shareholder for the merger.
However, the amalgamation is subject to approval from Reserve Bank of India, Competition Commission of India and other authorities, Kotak Mahindra banks stated. Following the merger, Kotak Mahindra Bank will be fourth largest private sector bank ICICI Bank, HDFC Bank and Axis Bank.
Around 89 per cent of the shareholders of ING Vysya Bank have approved the scheme of amalgamation. The scrip of Kotak Mahindra Bank gained 2.62 per cent was trading at Rs. 1,304.50 and ING Vysya Bank shares were up 3.22 per cent at Rs. 905.70 on Thursday following the merger news. The share exchange ratio has been fixed at 725 equity shares of Kotak Bank for every 1,000 shares of ING Vysya Bank.