REG - Axis Bank Ltd - Update on Acquisition of Business Undertakings

Axis BankAnnouncement

01/03/2023 07:01

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RNS Number : 4228R  Axis Bank Limited  01 March 2023

AXIS/CO/CS/580/2022-23

 

March 1, 2023

 

Dear Sir(s),

 

Sub.: Update on acquisition of business undertakings

 

We refer to our letter no. AXIS/CS/CO/697/2021-22 dated March 30, 2022,
intimating the purchase of the Citibank's India Consumer Business from
Citibank N.A. (acting through its branch in India) ("CBNA") and the NBFC
Consumer Business from Citicorp Finance (India) Limited ("CFIL"), as going
concerns, without values being assigned to individual assets and liabilities
to either business, subject to fulfilment of specific conditions and obtaining
requisite approvals at a total purchase consideration (subject to customary
& contractual adjustments) upto INR 12,325 crores. We also refer to our
subsequent communications vide our letter nos. AXIS/CO/CS/230/2022-23 dated
July 26, 2022 and AXIS/CO/CS/577/2022-23 dated February 23, 2023, in this
regard.

 

We now wish to inform you that completion of the acquisition of Citibank's
India Consumer Business from CBNA and the NBFC Consumer Business from CFIL as
going concerns, without values being assigned to individual assets and
liabilities for either business shall happen on March 1, 2023. The cash
consideration for the acquisition based on the contracted computation of
closing position of assets, assets under management and liabilities as at
January 31, 2023 stands at INR 11,603 crores. The said cash consideration is
subject to contractual and customary true up and / or true down adjustments
and changes in the business position from January 31, 2023 to 24:00 hours
February 28, 2023. The post completion action items as contractually agreed
will be completed as per mutually agreed timelines.

 

Accordingly, the businesses of CBNA and CFIL stands transferred to Axis Bank
and the Bank becomes the owner of Citibank's India Consumer Business and NBFC
Consumer Business effective from 00.00.01 hrs on March 1, 2023 subject to and
in accordance with the requirements and terms of the agreed contractual
documentation and settlement of consideration.

 

Given the structure of the transaction, the aforesaid cash consideration along
with any true up or true down shall be accounted for as goodwill and other
intangibles, which will be entirely amortised for accounting purposes in
FY2023.

 

This is for your information and records.

 http://www.rns-pdf.londonstockexchange.com/rns/4228R_1-2023-2-28.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/4228R_1-2023-2-28.pdf)

Thanking You.

 

With warm regards,

 

For Axis Bank Limited

Sandeep Poddar

Company Secretary

 

 

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