Kerala HC, Madras HC approve Manappuram Finance merger with MAGFIL

Combined entity will offer enhanced shareholder value

Manappuram General Finance & Leasing Ltd, (MAGFIL) the Kerala based Gold Loan major on Wednesday announced that both High Court of Madras and High Court of Kerala have approved the merger of its group company – Manappuram Finance Tamil Nadu Ltd, with itself.

The merger is at a swap ratio 2.1:1 (21 MAGFIL shares for every 10 shares of Manappuram Finance Tamilnadu Ltd.) and the combined entity will be called as Manappuram General Finance & Leasing Ltd.

Commenting on the merger, Mr. Nandakumar, Executive Chairman, Manappuram Group said: “The merger would lead to improved cost efficiencies and synergies in operations leading to enhanced shareholder value.”

The combined entity in Manappuram General Finance has recorded robust growth in its H1 financial performance as on September 30, 2009 with Total Revenue jumping 112% to Rs 185.37 crore from Rs 87.32 crore, as on September 30, 2008. The combined Net Profit for the same period increased 124% to Rs 44.15 crore from Rs 19.75 crore as compared to September 30, 2008.

The merger of the two companies will have a presence of more than 830 branches across the country.