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The Shareholders of Global Trust Bank on Monday approved the bank’s merger with UTI Bank, at an extra-ordinary general meeting held in Hyderabad. The UTI Bank shareholders had approved the merger on Saturday. Both the banks, which decided to amalgamate last month, to form UTI Global Bank. Both the banks will approach the Reserve Bank of India on Wednesday to seek the regulator’s approval for the merger proposal. The new bank, christened UTI Global Bank, is expected to come into existence, from the day the RBI approval becomes effective. The merger plan envisages amalgamation of UTI Bank into GTB. “We have set a deadline of March 10, for the merger process to be complete,” said a GTB official. The boards of the two banks had approved a stock swap ratio of 2.25:1, which translates into four shares of GTB, for every nine UTI Bank shares held. The paid-up capital of UTI Global Bank will be Rs 180 crore, consisting of 18 crore shares of Rs 10 each. At present, UTI Bank has a share capital of Rs 131 crore and GTB has a capital base of Rs 121 crore. The capital adequacy of the new bank will be somewhere close to 11 per cent. UTI Global Bank will have a net worth of Rs 928 crore, on a balance sheet size of Rs 20,000 crore. The bank will have a deposit base of around Rs 16,000 crore, and advances of around Rs 7,900 crore. The bank will have a network of 157 branches and 336 ATMs. UTI is the principal shareholder in UTI Bank, with a 60.7 per cent equity stake. Post-merger, UTI will be the largest shareholder in UTI Global Bank, with a holding of 19.8 per cent. The promoters of GTB, which includes its chairman Ramesh Gelli, will have an equity stake of 16 per cent, FIIs, NRIs and OCBs (12.8 per cent), International Finance Corporation, Washington (7.8 per cent), Life Insurance Corporation (1.9 per cent), General Insurance Corporation and subsidiaries (1.8 per cent), and public and others (39.9 per cent). Source : The Economic Times Dated : 27 February, 2001
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The Board of directors of Sun Pharmaceuticals has approved a share swap ratio of 1:500 for the merger of Pradeep Drugs Company into itself. PDC shareholders will get one share of Sun Pharma for every 500 shares of PDC. The share swap ratio was fixed according to valuation reports prepared by PricewaterhouseCoopers and Dhir & Dhir Associates. The merger will be effective from April 1, 2000 subject to shareholders approval. Sun will issue 18,520 fresh shares in exchange for 92,59,657 shares of PDC. PDC is a sick bulk drugs company with accumulated losses of over Rs 15 crore. The company has debt of Rs 7.26 crore and net current liabilities of Rs 5.57 crore. PDC's paid up capital is Rs 9.25 crore. Sun has been sourcing quantities of bulk drugs from PDC on a contract basis like the anti-biotics erythromycin, clarithromycin and azithromycin. Sun said the move to merge PDC was to ensure confidentiality of its processes and control the quality of PDC's production that would henceforth be used in its value-added drugs. This would mean however that Sun would have to take PDC's losses on its own books. PDC had a turnover of Rs 21.47 crore and net loss of Rs 0.95 crore in 1999-2000. The Chennai-based listed company belongs to the Dadha family from whom Sun acquired Tamil Nadu Dadha Pharmaceuticals in 1997. This has since been merged into Sun. The Dadha family owns about 40 per cent of PDC's equity and if the merger has been approved by the shareholders of both companies, would receive 7408 shares in Sun Pharma in exchange for this equity. The Dadha family had earlier acquired some equity in Sun because of the T N Dadha merger. This is not the first time Sun has merged a BIFR company into it. Last year, Gujarat Lyka Organics which it acquired some years back to source bulk cephalosporins, was also merged into Sun after it failed to meet expectations. Source : The Economic Times Dated : 27 February, 2001
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