ING Vysya Bank completes merger with Kotak Mahindra Bank
April 07 2015 - 2:31AM
The merger between ING Vysya Bank (Vysya) and
Kotak Mahindra Bank (Kotak) has today been completed. The combined
entity has a strengthened position as one of India's leading
privately held banks, with a wider geographical spread and enhanced
expertise across customer segments and product categories. ING will
continue to service its Indian clients outside of India and will
support its global clients operating in India through the larger
combined platform. ING and Kotak have also established an active
dialogue with respect to additional areas of cooperation across a
broad range of products.
Vysya and Kotak announced their intention to merge
their respective businesses on 20 November 2014. On 31 March 2015
the Reserve Bank of India has approved this transaction with effect
from 1 April 2015.
ING was the largest shareholder in Vysya with a
shareholding at the time of announcement of the merger of 42.7%.
Under the terms of the transaction as announced on 20 November
2014, shareholders of Vysya will receive 0.725 shares in Kotak for
each Vysya share. ING will hold a stake of 6.5 % in the combined
company, which will operate under the Kotak brand. ING's holding in
the combined company will be subject to a 1 year lock-up period
from the closing of the transaction.
Based on Vysya's book value as per 31 December
2014, the gain on this transaction will be approximately EUR 450
million. The majority of this will be reflected in the net profit
of the second quarter of 2015. The increase in net profit compared
to the earlier announced EUR 150 million net profit is a result of
the increase in the share price of Kotak since the date the
transaction was announced, as well as positive currency impact.
As of 1 April, the legal entity ING Vysya Bank Ltd
has ceased to exist. Vysya was established over 80 years ago,
offering retail, private and wholesale banking products. In 1999
ING Bank's predecessor Bank Bruxelles Lambert acquired an equity
stake in Vysya which ING increased in 2002 to around the level of
the 42.7% shareholding which ING still held at the time of the
announcement of the merger with Kotak. In 2002, ING also formed an
Insurance joint-venture with Vysya, in which ING sold its interest
in 2013.
Press enquiries |
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Investor enquiries |
Carolien van der Giessen |
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ING Group Investor Relations |
+31 20 576 6386 |
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+31 20 576 6396 |
Carolien.van.der.Giessen@ing.com |
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Investor.Relations@ing.com |
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ING is a global financial institution with a strong European base
offering banking services through its operating company ING Bank
and holding a significant stake in the listed insurer NN Group NV.
The purpose of ING Bank is empowering people to stay a step ahead
in life and in business. ING Bank's 53,000 employees offer retail
and commercial banking services to customers in over 40
countries.
ING Group shares are listed (in the form of depositary receipts) on
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Sustainability forms an integral part of ING's corporate strategy,
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IMPORTANT LEGAL INFORMATION
Certain of the statements contained in this document are not
historical facts, including, without limitation, certain statements
made of future expectations and other forward-looking statements
that are based on management's current views and assumptions and
involve known and unknown risks and uncertainties that could cause
actual results, performance or events to differ materially from
those expressed or implied in such statements. Actual results,
performance or events may differ materially from those in such
statements due to, without limitation: (1) changes in general
economic conditions, in particular economic conditions in ING's
core markets, (2) changes in performance of financial markets,
including developing markets, (3) consequences of a potential
(partial) break-up of the euro, (4) the implementation of ING's
restructuring plan to separate banking and insurance operations,
(5) changes in the availability of, and costs associated with,
sources of liquidity such as interbank funding, as well as
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capital and built-in loss carry forwards, (17) changes in
credit-ratings, (18) ING's ability to achieve projected operational
synergies and (19) the other risks and uncertainties detailed in
the risk factors section contained in the most recent annual report
of ING Groep N.V.
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only as of the date they are made, and, ING assumes no obligation
to publicly update or revise any forward-looking statements,
whether as a result of new information or for any other reason.
This document does not constitute an offer to sell, or a
solicitation of an offer to buy, any securities. |
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Source: ING Group via Globenewswire
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