Indian private sector lender IndusInd Bank and local microfinance firm Bharat Financial Inclusion have entered into exclusive talks for a merger.
“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 filing to the stock exchange.
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The companies, however, did not reveal any further terms of the deal or the exclusivity period duration.
However, according to media reports, the merger if materialised is likely to be structured as a share swap deal and the swap ratio in consideration is one IndusInd share for 1.75 shares of Bharat Financial.
The negotiations are subject to due diligence, shareholders, regulatory, NCLT and other third-party approvals.
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