AU Small Finance Bank Limited agreed to acquire Fincare Small Finance Bank Limited from Fincare Business Services Limited, True North Managers LLP, Leapfrog Rural Inclusion Ltd, Vistra ITCL Limited, TA Associates Management, L.P. and Tata Opportunities General Partners Llp for INR 44 billion.
October 28, 2023
Share
AU Small Finance Bank Limited (NSEI:AUBANK) agreed to acquire Fincare Small Finance Bank Limited from Fincare Business Services Limited, True North Managers LLP, Leapfrog Rural Inclusion (India) Ltd, Vistra ITCL (India) Limited, TA Associates Management, L.P. and Tata Opportunities General Partners Llp for INR 44 billion on October 29, 2023. Upon obtaining the required approvals, Fincare SFB shall merge into AU SFB and Shareholders of Fincare SFB shall receive shares of AU SFB in exchange for their shares in Fincare SFB at the approved share swap ratio. All employees of Fincare SFB shall become part of the AU SFB family. Subject to the approval of shareholders of AU SFB and Fincare SFB respectively, Reserve Bank of India under the Banking Regulation Act and the Competition Commission of India. The Board of Directors of AU Small Finance Bank Ltd and the Board of Directors of Fincare Small Finance Bank Ltd, at their respective meetings held earlier yesterday, approved an all-stock merger of AU SFB and Fincare SFB.JM Financial Limited provided a Fairness Opinion to AU SFB on the share exchange ratio and IIFL Securities Ltd. provided a Fairness Opinion to Fincare SFB. Accordingly, Fincare SFB shareholders shall receive 579 shares in AU SFB for 2,000 shares of Fincare SFB. As on March 4, 2024, RBI approves merger.
ICICI Securities Limited and Arpwood Capital Pvt Ltd acted as Financial Advisors to Fincare SFB on the transaction and Ambit Pvt Ltd and Mirae Asset Capital Markets(India) Pvt. Ltd. Acted as Financial Advisors to AU SFB. Ashwath Rau and Vipul Jain of AZB & Partners acted as Legal Advisors to AU SFB and Anagram Partners acted as Legal Advisors to Fincare SFB. KPMG and PwC acted as Diligence Advisors to AU SFB and Fincare SFB respectively. RBSA Valuation Advisors LLP provided valuation advisory to Fincare Small Finance Bank Limited.
AU Small Finance Bank Limited is an India-based non-deposit accepting non-banking financial company (NBFC-ND). The Company is engaged in providing a range of banking and financial services, including retail banking, wholesale banking and treasury operations and other services. Its segments include treasury, retail banking, wholesale banking, and other banking businesses. The treasury segment primarily consists of interest from investment portfolios, money market borrowing and lending. The retail banking segment serves retail customers through a branch network and other delivery channels. The wholesale banking segment provides loans and transaction services to large corporates, emerging corporates, public sector units, government bodies, financial institutions and medium scale enterprises. Its personal banking includes savings account, current account and fixed deposits. It offers various types of loans, which include car loan, home loan, personal loan, tractor loan and others.
AU Small Finance Bank Limited agreed to acquire Fincare Small Finance Bank Limited from Fincare Business Services Limited, True North Managers LLP, Leapfrog Rural Inclusion Ltd, Vistra ITCL Limited, TA Associates Management, L.P. and Tata Opportunities General Partners Llp for INR 44 billion.
AU SMALL FINANCE BANK LIMITED 
