Amarchand Mangaldas has been appointed as the sole counsel for the ICICI Bank (ICICI) merger with Bank of Rajasthan (BoR). The deal that was announced in Tuesday will increase the strength of BoR in northern India and some parts of western India..Amarchand & Mangaldas (Amarchand) has been appointed as the sole counsel for the ICICI Bank merger with Bank of Rajasthan (BoR)..BoR, one of the oldest private sector banks in the country, on Tuesday announced that it would merge with the largest private sector bank, ICICI Bank. ICICI Bank has decided to pay 90 percent premium over Monday’s closing price of Rs. 99.5 per share..Amarchand, led by its Mumbai Managing Partner, Cyril Shroff is advising on this complex banking M&A transaction. Amarchand has been a favorite of ICICI Bank for a long time and has advised on all significant transactions including the merger of ICICI – ICICI Bank..Audit firm Haribhakti & Co. and Deloitte Haskins will assess the valuation of BoR and appraise the Board of Directors of both banks to seal the deal this Sunday (May 23)..A Livemint report values the deal at more than Rs. 3,000 crore ($ 667 million). This will be ICICI Bank’s third acquisition after Bank of Madura in 2000-01 and Sangli Bank in 2006-07. Interestingly, the first acquisition helped ICICI Bank increase its presence in the south and the second in the west. The BoR acquisition will strengthen its network in northern as well as western India..The due diligence for ICICI will remain hectic for Amarchand considering the Securities Exchange Board of India’s (SEBI) ban on the Tayal family that controls BoR. In March this year, SEBI banned BoR promoters Pravin Kumar Tayal’s family companies and close associates from trading in the securities market for improper disclosure about their holdings in BoR. 100 companies related to Tayal family were barred by SEBI. According to the SEBI, the Tayal family owns 55.01% of BoR, even though Tayal claimed his group stake was only 28.06%..One of the guidelines for issuing license to a bank by the Reserve Bank of India (RBI) is “No single entity or group of related entities would have shareholding or control, directly or indirectly, in any bank in excess of 10 per cent of the paid up capital of the private sector bank. Any higher level of acquisition will be with the prior approval of RBI and in accordance with guidelines issued by RBI for grant of acknowledgement for acquisition of shares”..The Tayal family is supposed to have violated these licensing norms and therefore has been under the scanner of the RBI. SEBI also has been investigating the group companies since 2003, where Tayal family has been constantly hit by adverse orders from the securities regulator. Paras Kuhad & Associates had advised the Tayal family on several of its litigations with SEBI..With BoR labour union deciding to oppose the merger demanding parliamentary enquiry into the affairs of BoR, it is bound to take time before this merger is complete.
Amarchand Mangaldas has been appointed as the sole counsel for the ICICI Bank (ICICI) merger with Bank of Rajasthan (BoR). The deal that was announced in Tuesday will increase the strength of BoR in northern India and some parts of western India..Amarchand & Mangaldas (Amarchand) has been appointed as the sole counsel for the ICICI Bank merger with Bank of Rajasthan (BoR)..BoR, one of the oldest private sector banks in the country, on Tuesday announced that it would merge with the largest private sector bank, ICICI Bank. ICICI Bank has decided to pay 90 percent premium over Monday’s closing price of Rs. 99.5 per share..Amarchand, led by its Mumbai Managing Partner, Cyril Shroff is advising on this complex banking M&A transaction. Amarchand has been a favorite of ICICI Bank for a long time and has advised on all significant transactions including the merger of ICICI – ICICI Bank..Audit firm Haribhakti & Co. and Deloitte Haskins will assess the valuation of BoR and appraise the Board of Directors of both banks to seal the deal this Sunday (May 23)..A Livemint report values the deal at more than Rs. 3,000 crore ($ 667 million). This will be ICICI Bank’s third acquisition after Bank of Madura in 2000-01 and Sangli Bank in 2006-07. Interestingly, the first acquisition helped ICICI Bank increase its presence in the south and the second in the west. The BoR acquisition will strengthen its network in northern as well as western India..The due diligence for ICICI will remain hectic for Amarchand considering the Securities Exchange Board of India’s (SEBI) ban on the Tayal family that controls BoR. In March this year, SEBI banned BoR promoters Pravin Kumar Tayal’s family companies and close associates from trading in the securities market for improper disclosure about their holdings in BoR. 100 companies related to Tayal family were barred by SEBI. According to the SEBI, the Tayal family owns 55.01% of BoR, even though Tayal claimed his group stake was only 28.06%..One of the guidelines for issuing license to a bank by the Reserve Bank of India (RBI) is “No single entity or group of related entities would have shareholding or control, directly or indirectly, in any bank in excess of 10 per cent of the paid up capital of the private sector bank. Any higher level of acquisition will be with the prior approval of RBI and in accordance with guidelines issued by RBI for grant of acknowledgement for acquisition of shares”..The Tayal family is supposed to have violated these licensing norms and therefore has been under the scanner of the RBI. SEBI also has been investigating the group companies since 2003, where Tayal family has been constantly hit by adverse orders from the securities regulator. Paras Kuhad & Associates had advised the Tayal family on several of its litigations with SEBI..With BoR labour union deciding to oppose the merger demanding parliamentary enquiry into the affairs of BoR, it is bound to take time before this merger is complete.