IndusInd Bank has entered into an exclusivity agreement with Bharat Financial to evaluate possibility of a strategic deal between them.
“The Exclusivity Agreement provides for a mutually agreed exclusivity period for due diligence and discussions to evaluate a potential strategic combination between the company and BFIL by way of ambulation through a Scheme of Arrangement, or any other suitable structure,” IndusInd said in a release to the exchanges.
The transaction between the two companies would be subject to due diligence, agreement on the appropriate transaction structure, definitive documentation and Board, shareholders, regulatory, NCLT and other third-party approvals, as applicable, the release said.
The release indicates the deal is likely in its final stages, said SP Tulsian of sptulsian.com adding the swap ration will be most important thing to look at.
According to a source-based report, the swap ratio being considered is one share of IndusInd Bank for 1.75 shares of Bharat Financial. The deal is likely to be announced by the end of September.