Financial Daily from THE HINDU group of publications
Tuesday, Feb 14, 2006
Financial Daily from THE HINDU group of publications Tuesday, Feb 14, 2006 |
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Money & Banking
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Mergers & Acquisitions IOB to pay Rs 170 cr to buy out Bharat Overseas Bank M. Ramesh
Chennai , Feb 13 THE board of directors of Indian Overseas Bank (IOB) will meet on Tuesday to finalise the proposal to buy out the stakes of the six other banks in Bharat Overseas Bank Ltd, in which IOB currently holds the highest stake of 30 per cent. According to sources in the banking industry, the consideration has been agreed at Rs 155 a share. This means that IOB will pay about Rs 170 crore for the acquisition. The other six banks will get richer by various amounts on account of the deal. Bank of Rajasthan, which has the second highest stake of 16 per cent, will get Rs 39 crore. Vysya Bank with 14.66 per cent will get Rs 36 crore, while Federal Bank (10.67 per cent) will get Rs 26 crore.Karur Vysya Bank (10 per cent) will gain Rs 24 crore, South Indian Bank (10 per cent) Rs 24 crore, and Karnataka Bank (8.67 per cent) Rs 21 crore. Bharat Overseas Bank has 101 branches across India and one in Bangkok. The bank has total business of around Rs 5,000 crore. It recorded net profit of Rs 20 crore in 2004-05 and Rs 7 crore in the first half of the current year. At the end of the last financial year, it had net owned funds of Rs 200 crore.
More Stories on : Mergers & Acquisitions | Public Sector Banks
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