Lakshmi Vilas Bank skyrockets 10% as mutual due diligence with Clix group completes

The bank signed a preliminary, non-binding letter of intent (“LOI”) with Clix Capital Services, Clix Finance which is collectively called as Clix Group.

Sep 16, 2020 01:09 IST India Infoline News Service

Lakshmi Vilas Bank
Chennai-based Lakshmi Vilas Bank froze in an upper circuit limit on Wednesday's trading session as the merger deal with Clix Group takes one-step ahead.

On Sensex, the bank's stock is trading at the upper price band of Rs22.35 per piece surging by 9.83% at around 1.48 PM.

In its regulatory filing on Tuesday, Lakshmi Vilas Bank said, "We wish to inform that the mutual due diligence is substantially complete, and the parties are in discussions on the next steps. The Bank will continue to share any further information as and when they materialize."

This was in regards to the preliminary, non-binding letter of intent (“LOI”) signed on June 15, 2020, with Clix Capital Services, Clix Finance which is collectively called as Clix Group.

The LOI is in relation to the proposed amalgamation of Clix Group with the Bank.

That time, the bank said under the non-binding LOI, the proposed amalgamation is subject to completion of mutual due-diligence, regulatory and other customary approvals. Later on July 30, 2020, as per the mutual understanding between parties, the exclusivity period was extended till September 15, 2020, due to prevailing pandemic situation.

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