hdfc-bank-acquires-centurion-for-24-billion

HDFC Bank acquires Centurion for $2.4 billion

The all-share takeover of Centurion Bank of Punjab creates IndiaÆs second largest bank by number of branches, but the share-swap ratio disappoints shareholders.

By Sameera Anand

February 25, 2008

HDFC Bank has acquired Centurion Bank of Punjab for Rs95 billion $2.38 billion creating IndiaÆs second largest bank measured in terms of number of branches.

The merger is an all-share deal with shareholders of Centurion being offered one HDFC Bank share for every 29 shares they hold in Centurion. The share swap ratio was announced yesterday after both parties confirmed the deal over the weekend. The ratio is subject to due diligence and the deal is subject to approval from the Reserve Bank of India and other relevant regulatory authorities and shareholders.

HDFC Bank also clarified that it would consider a preferential offer to its controlling shareholder, Housing Development Finance Corporation HDFC, to enable...

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at [email protected], or +(852) 2122 5222