Sunday 26 July 2015

Amalgamation of DFCC and DFCC Vardhana from Oct. 1

The amalgamation between the DFCC Bank PLC and DFCC Vardhana Bank PLC (DVB) is expected to take effect from Oct. 1, 2015, or such other date as may be specified in the certificate of amalgamation issued in that regard by the Registrar General of Companies, the DFCC and DFCC Vardhana said in separate Stock Exchange filings on Friday.

The shareholders of DVB (other than DFCC) shall be paid a consideration of Rs. 52 for every DVB share they hold in lieu of their holding in DVB as at the date of the amalgamation.

The 281,823,005 shares of DVB held by DFCC would be cancelled in terms of the relevant provisions of the Companies Act upon the amalgamation without any payment or other consideration.

Ernst & Young Transaction Advisory Services (Private) Ltd. has issued an Independent Advisors’ Report on July 3 in respect of the payment to minority shareholders.

DVB which had a commercial banking licence handled the commercial banking business of the DFCC group.

The two banks had made disclosures in this regard on May 15 this year and their two boards have approved the amalgamation proposal subject to obtaining necessary shareholder and regulatory approvals.

The DFCC Bank will hold an EGM on Aug. 28 at King’s Court of the Cinnamon Lakeside Hotel to seek the necessary shareholder approval while DFCC Vardhana will hold an EGM the same day at the head office of the DFCC Bank for the same purpose.

The filing by both entities said that the DFCC Bank PLC will be the surviving entity upon completion of the amalgamation.
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