BOR shareholders approve merger with ICICI Bank
The shareholders of Bank of Rajasthan have approved the bank’s merger with ICICI Bank. The bank’s shareholders have passed a resolution with requisite majority under section 44A of the Reserve Bank of India (RBI) Act and will file the EGM resolution with the Bombay Stock Exchange, the National Stock Exchange and the bank.
This comes after a series of bizarre events on Tuesday, where the extraordinary general meeting (EGM) that was called to approve the merger was first cancelled after a Kolkata civil court restrained the management from holding the EGM. This was based on a complaint filed by a shareholder who was against the merger. The bank then went ahead and informed the exchanges that the EGM has been cancelled following a court order.
However, some shareholders, including the former promoter PK Tayal went ahead and held the meeting chaired by a shareholder named DV Lakhani. And this merger resolution was put to vote.
In the meantime, ICICI Bank approached the Kolkata High Court and got a stay against the lower court order.
The results of voting were declared on Tuesday and that approved the merger with ICICI Bank.
Commenting on the issue, G Padmanabhan, Managing Director and Chief Executive Officer of Bank of Rajasthan, said, “We have only flagged certain issues to our solicitors so that they can come back and tell us that how to take the process forward. We have asked for a legal view and we are awaiting that. The management really wants to know whether whatever has been done is okay or not because the management has been endeavoring to implement the majority decision of the board yesterday itself in the EGM because of the court order we went slightly out of the loop. So we are only trying to ensure that the process is taken forward legally and appropriately.”
“The communication has been sent to the stock exchanges and what the stock exchanges do is up to them,” he adds.
Source:- moneycontrol
