Vysya Bank posts Rs 182-million net profit in second quarter
By Mumbai: | 24 Oct 2002
Bank Brussels Lambert (BBL) is interested in hiking its aggregate shareholding in Vysya Bank to approximately 49 per cent. The promoter group of the bank agreed to sell to Banque Bruxelles Lambert SA, a wholly-owned subsidiary of BBL Mauritius Holdings, to purchase 54,36,235 fully paid-up equity shares of the face value of Rs 10 each, representing 23.99 per cent of the issued equity share capital of the bank at an average price of Rs 626.92 per share, subject to approval of the various regulatory authorities including the Foreign Investment Promotion Board and the Reserve Bank of India.
In a subsequent letter, BBL has informed the bank that Banque Bruxelles Lambert is also interested in purchasing at a latter date, further shares comprising approximately 5 per cent of the issued share capital of the bank, either through market transactions or negotiated settlement, with intention to increase its aggregate shareholding to approximately (but not more than) 49 per cent of the issued equity share equity share capital of the bank, being the present maximum permissible limit for foreign direct investment in banking companies under the automatic route.
The bank has also decided to reduce its equity stake to 20 per cent in ING Vysya Life Insurance Company. The board of directors of the bank reviewed the bank's shareholding in the insurance joint venture, ING Vysya Life Insurance Company Pvt Ltd, in the light of the current and emerging scenario and decided to reduce its equity stake to 20 per cent.
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