CreditAccess Grameen acquires Madura Micro Finance

CreditAccess Grameen (CAGL) has signed definitive agreements for acquisition of a controlling majority in Madura Micro Finance and subsequently, a merger of MMFL into CAGL.

The Board of Directors of CAGL and the Board of Directors of MMFL at their respective meetings held on 27 November 2019 have approved the Transaction.

CAGL will acquire 100% stake in MMFL in a two-step process. In the first leg, CAGL will acquire up to 76.2% stake in MMFL from its existing shareholders for cash and in the second stage, MMFL shall be merged into CAGL through a scheme of arrangement (Scheme). As part of the merger, the residual shareholders of MMFL will receive shares of CAGL at the share swap ratio proposed in the Scheme.

The Transaction is subject to the approval of Reserve Bank of India, the Securities and Exchange Board of India / Stock Exchanges, National Company Law Tribunal and such other regulatory approvals as may be required.

The business acquired from MMFL will continue to operate as a separate division until the integration of business and processes is complete. All employees of MMFL will become employees of CAGL upon merger. MMFL's Promoter, Dr. Tara Thiagarajan, will act as an Advisor to the Board of Directors of CAGL after the merger.

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