Under the earlier scheme of amalgamation announced on April 5, LVB was supposed to be merged with Indiabulls Housing Finance subject to regulatory approval.
MUMBAI: Indiabulls Housing Finance(IHF) and its subsidiary Indiabulls Commercial Credit Ltd (ICC) will be merged into Lakshmi Vilas Bank (LVB) after a change in the merger agreement announced on the stock exchanges late on Friday. The change will potentially make it easier for the entities to get regulatory approval as Indiabulls promoters may potentially not need to pass muster with the Reserve Bank of India (RBI).
Under the earlier scheme of amalgamation announced on April 5, LVB was supposed to be merged with Indiabulls Housing Finance subject to regulatory approval. The share swap ratios and other details linked to the deal remain the same, said Gagan Banga, managing director at IHF.
“When we announced the scheme in April both the options were open to us but after considering all options in the last few days we have decided that both the Indiabulls companies will be merged with LVB. All other things will remain the same and LVB shareholders will hold 9.5% in the combined entity,” Banga said.
In a notice to the stock exchange on Friday, IHF and ICC were described as transferor companies while LVB was described a transferee company, a change from April 5 when LVB was described as the transferor company. Also, ICC was part of the deal which was announced on April 5. The new deal envisages the merger of both Indiabulls companies into LVB on an ongoing basis without being wound up.