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At 09:25 AM; BFIL was trading nearly 2% higher at Rs 951, after hitting high of Rs 956 in intra-day trade on BSE. IndusInd Bank gained 1.6% to Rs 1,723 in early morning deal, was up almost 1% at Rs 1,706. On comparison, the S&P BSE Sensex was up 0.52% at 31,853.
The board of directors of IndusInd Bank has on Monday, September 11, 2017 entered into a “confidentially, exclusively and standstill agreement with BFIL, IndusInd Bank said in a statement.
The management of IndusInd Bank has been authorized to explore strategic opportunities for the expansion of business of the bank and to assess the viability of strategic partnership, collaboration, or restructuring opportunities from time to time,” it added.
The exclusively agreement provides for a mutually agreed exclusively period for due diligence and discussions to evaluate a potential strategic combination, between the bank and BFIL by way of amalgamation through scheme of arrangement, or any other suitable structure.
“The Company has entered into an exclusivity agreement with IndusInd Bank for agreeing to have an exclusive discussion with IndusInd Bank about the proposed potential strategic combination by way of amalgamation through a scheme of arrangement, or any other suitable structure,” BFIL said in a statement.
The agreement primarily provides for confidentiality of information / discussion and finalisation of the terms and conditions relating to the proposed transaction with a view to entering into a definitive documentation after the necessary approvals, it added.