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The Board of Directors of AU Small Finance Bank (AU SFB) and
the Board of Directors of Fincare Small Finance Bank (Fincare SFB), at their respective meetings held earlier yesterday, approved an all-stock merger of AU SFB and Fincare SFB.
The scheme of amalgamation, under Section 44A of the Banking Regulation Act, 1949, is subject to the approval of shareholders of AU SFB and Fincare SFB respectively, Reserve Bank of India under
the Banking Regulation Act and the Competition Commission of India.
Upon obtaining the required approvals, Fincare SFB shall merge into AU SFB and Shareholders of Fincare SFB shall receive shares of AU SFB in exchange for their shares in Fincare SFB at the approved share swap ratio. All employees of Fincare SFB shall become part of the AU SFB family.
According to terms, Fincare Business Services (FBSL), promoter of Fincare SFB, shall infuse Rs 700 crore into Fincare SFB prior to the completion of the merger. Fincare SFB shareholders shall receive 579 shares in AU SFB for 2,000 shares of Fincare SFB. Post merger, existing shareholders of Fincare SFB shall hold ~9.9% in AU SFB.
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