By IANS
Mumbai : The privately held HDFC Bank said Monday that its board has approved a share swap ratio of one share for every 29 held in Centurion Bank in an all-share deal that would be India’s biggest buyout in the financial sector.
The boards of HDFC Bank and Centurion Bank of Punjab Ltd met Saturday to thrash out the merger and made an “in-principle approval”.
HDFC Bank’s board of directors accepted the valuation report by consultants Ernst and Young and Dalal and Shah for the share swap ratio, which would be one equity share of Rs.10 each for every 29 equity shares of Rs.1 each of Centurion Bank.
Centurion Bank also said that its board Monday approved the swap ratio.
HDFC Bank told the Bombay Stock Exchange that its board would again meet Thursday to approve of the merger.
It would also consider making a preferential offer to its promoter Housing Development Finance Corp Ltd (HDFC) to enable HDFC to maintain its shareholding percentage in the HDFC Bank.