The Board of Directors ('Board') of CreditAccess Grameen Limited (the 'Company'), at its meeting held on November 27, 2019 approved the acquisition of up to 76.2% of the share capital of Madura Micro Finance Limited ('MMFL') by the Company from its existing shareholders (the 'Acquisition'); and a scheme of arrangement amongst the Company, MMFL and their respective shareholders and creditors, providing for the amalgamation of MMFL into the Company (the 'Amalgamation' and together with the Acquisition the 'Transaction').
The price to be paid for acquisition is Rs. 1,216.16 per share, aggregating to Rs. 666.4 crores, which may be increased by such amount calculated at an interest rate of 9% per annum for the period from May 1, 2020 until the completion of the Acquisition, if the Acquisition is not completed by April 30, 2020.
The Acquisition is subject to obtaining necessary approvals from the regulatory authorities such as the Reserve Bank of India and other customary conditions precedent.
The sellers are Dr. Tara Thiagarajan, AVT Group, Elevar Equity Mauritius and other minority shareholders. The Amalgamation will be undertaken after the completion of the Acquisition.
Following the completion of the Acquisition, the Company would hold up to 5,479,266 shares of the share capital of MMFL and MMFL is proposed to be amalgamated into the Company by way of a National Company Law Tribunal approved scheme of arrangement under Section 230-232 of the Companies Act, 2013 ("Act") and other applicable provisions of the Act and rules framed thereunder, and Regulation 37 of the SEBI (Listing Obligations and Disclosure Regulations), 2015 for the Amalgamation.
The Amalgamation is subject to necessary approvals including from the shareholders and creditors of the Company.
MMFL's revenue for FY 2019 was Rs 375 crores and its PAT for FY 2019 was Rs 81 crores. Its Mar 2019 / Sep 2019 Gross Loan Portfolio were Rs 1,860 crores / Rs 2,053 crores, respectively.
CreditAccess Grameen Limited (the "Company") intends to utilize MMFL platform as a future growth driver, and through this acquisition, it intends to gain access to MMFL's wide customer base, distribution footprint, technology, employees and other key assets.
Shares of CreditAccess Grameen Ltd was last trading in BSE at Rs.749 as compared to the previous close of Rs. 742.6. The total number of shares traded during the day was 7251 in over 1213 trades.
The stock hit an intraday high of Rs. 762 and intraday low of 728. The net turnover during the day was Rs. 5406093.