Bank of Baroda on a buyer lookout for its New Zealand subsidiary

28 Sep 2023 , 09:25 AM

According to a notice on the bank’s website, the public sector bank, Bank of Baroda (BoB) is looking for buyers for its New Zealand affiliate. The bank has sought interest of investment bank for assisting it in finding a buyer for one of its eight foreign subsidiaries, Bank of Baroda (New Zealand) Ltd.

At the end of March 2023, it has a total capital of NZ$40 million and total assets of NZ$138 million. Its net profit improved from NZ$1.46 million in March 2023 to NZ$1.97 million in March 2023.

BoB NZL, founded in 2008, was New Zealand’s first Indian bank. It has two locations: Auckland and Wellington.

Potential buyers will be identified, met with, and communicated with by investment banks and consultants. They will also be required to produce sensitive material, market the transaction, and participate in financial advising services such as due diligence and business valuation.

Investment banks have until October 3 to submit any questions, and they must present a plan by October 21.

Investment banks and consultants will be paid Rs 10 lakh when the information memorandum is finalized. Following the transaction, the bank will deduct Rs 10 lakh and pay the remaining amount after receiving all necessary regulatory permissions.

The investment banks will bear all fees and expenses, including legal counsel, appraisal, and so on (whether in terms of time or money).

BoB is shutting down its international operations and looking for value in its subsidiaries such as Nainital Bank and BoB Financial Solutions, its credit card unit.

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