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“Baseless and Misleading”: IDFC refutes report on delay in merger over fair value

“Baseless and Misleading”: IDFC refutes report on delay in merger over fair value

“Baseless and Misleading”: IDFC refutes report on delay in merger over fair value
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By CNBCTV18.com Nov 16, 2022 4:21:55 PM IST (Published)

IDFC’s response came after the leading business daily Economic Times, on Wednesday, published a report titled “IDFC merger may be delayed on fair value issue”.

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IDFC Ltd. has refuted the claims made in a news report about the delay in the merger of the company with IDFC First Bank calling it “baseless, false and misleading”. The infrastructure financing company added that it is “committed to its ongoing corporate restructuring plan” which will “enhance shareholders' value” in both entities.
IDFC called the news report media speculation and said that there is nothing at this point that requires disclosure from their end.
IDFC’s response came after Economic Times, on Wednesday, published a report titled “IDFC merger may be delayed on fair value issue”.
The ET report claimed that the impending merger between IDFC and IDFC First Bank could be delayed as the management of each entity was trying to seek out a beneficial agreement for their shareholders. While IDFC was looking for a higher share swap ratio, IDFC First Bank wanted its parent company to consider future earnings and growth in mind, the report added.
In 2018, IDFC Bank, and non-banking financial company (NBFC) Capital First completed the merger and the deal created a combined loan asset book of Rs 1.03 lakh crore for the merged entity IDFC First Bank. The shares of the new entity were listed on the NSE and the BSE in 2019.
IDFC Ltd.'s stock ended at Rs 78.50, down 2.12% on Wednesday.
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