merger of icici bank with icici ltd

8/3/2019 Merger of ICICI Bank With ICICI Ltd

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Presented By:

Alphonsa JosephMBA- 1(B)

Merger of ICICI Bank with ICICI

Ltd.


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Overview of ICICI

ICICI was formed in 1955 at the initiative of World Bank, the

Government of India and the representatives of Indianindustry with the aim to create a development financialinstitution for providing medium term project financing toIndian companies.

In 1990s, ICICI transformed its business to diversifiedfinancial services group.

In 1999, ICICI became first Indian company to be listed onthe NYSE.

It is Indians Second largest Bank with total assets of about146,214 crores at December 31, 2004.


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Overview of ICICI Bank ICICI is an affiliate of ICICI which offers a wide range

of banking products and financial services tocorporate and retail customers through a variety ofdelivery channels.

It covers areas of investment banking, Life and Non-life Insurance, Venture capital and assetsmanagement.

Set up its International banking group in fiscal 2002.

ICICI Banks equity shares are listed in India on StockExchange, Mumbai and the NSE of India Ltd. And its

ADRs are listed in NYSE.


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Purpose of Strategic Move

Optimal Strategic move for both entities

ICICI will have access to low cost funds of the

bank.

Enhance the value of ICICI through access tobanking services

Enhance the value od ICICI Bank through largecapital base.

Access to cheaper funds


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The Process adopted for Merger

October

2001

Board of Directors of ICICI and ICICI Bankapproved the Merger

January 2002

Approval by shareholders

March2002

Approval by High court of Gujarat atAhmedabad.

April2002

Approval by High court of judicature atMumbai


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January30, 2002

Meeting of equityshareholders

January31, 2002

Process of Ballot

Final Approval


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Terms finalized Merger ratio was set at two ICICI shares for every one

ICICI Bank share

Compliance with the Banking Regulations Act, 1949

and best practices of Corporate Governance.

Mr. N. Vague- Non Executive Chairman , heading themerged entity.

JM Morgan was appointed by ICICI to advise on thefair exchange ratio while ICICI Bank appointed DSPMerrill Lynch for the same purpose.


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Results of Implementation Business

Strong Retail Focus

Wide Reach

Restructuring Operations Bearing the EXCESS of the past

Subsidiary Concerns


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Merger gains to ICICI Bank Forward leap

Higher size and scale of operations

Offer complete product suite with immense cross-selling opportunities.

Free float market capitalization.


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Merger gains to ICICI

Ability to further diversify

Lower funding costs

Increased fee income opportunities

Competitive advantages


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Gains to shareholders of ICICI Bank.

Gains to Shareholders of ICICI

Gains to Customers

Gains to Managers and other employees


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Loss due to Merger

ICICI Ltd. was at an advantage as compared to ICICI

Bank


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Thank You!!!

merger of icici bank with icici ltd

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