Feb 11 Meetings To Ratify Scici, Icici Merger

The Industrial Credit and Investment Corporation of India (ICICI) and SCICI Ltd will hold their respective extraordinary general meetings (EGM) on February 11 to ratify their merger.

A notice to this effect is being sent to all shareholders of both the companies. However, the chances of a meeting of the creditors being called are slight as most of them are based abroad.

The notice follows the Bombay High Courts order to both companies to convene an EGM to take up the merger issue. According to officials, N Vaghul, chairman of both ICICI and SCICI, will preside over the meeting. In his absence, YH Malegam, will officiate.

 

Both EGMs are scheduled to take place on the same day and at the same venue. While the SCICI EGM has been scheduled at 10:30 in the morning the ICICI meeting has been kept at 3:30 pm. Both meetings will be held at Birla Matushri in Mumbai as the registered offices of both the companies are in Mumbai, highly placed sources in both FIs said.

Legal sources pointed out that after the ratification of the merger by the shareholders, the high court will be sent a report on the proceedings of the EGM after which the court will appoint an independent panel of auditors to take stock of its proceedings.

The court will pass its verdict after the panel submitts its report to the high court, the sources said. The merger will then take place with retrospective effect from April, 1, 1996, they said.

Meanwhile, in a separate move, SCICI employees are awaiting the restructuring process going on at ICICI. The top officials in ICICI have said that employees at ICICI are opting for the VRS scheme which is on. After the restructuring is completed, all of us will be absorbed and our designations and salaries restored, sources in the FI said.

Officials added that the matter is only in the preliminary stages and a clearer picture would emerge only after 5-6 months, by which time the merger will be ratified by the high court also.

Sources said ICICI is opening a new non-banking finance company which will take care of leasing. The new unit will be a part of the strategic business unit which KV Kamath, managing director and CEO of ICICI intends to put in place. Quite a few us might be absorbed into this new company, sources in SCICI said. ICICI will also be opening a new shipping division where professionals from SCICI will be absorbed. with experience in the shipping industry will also be absorbed.