CreditAccess Grameen (CAGL) has signed definitive agreements for acquisition of a controlling majority in Madura Micro Finance (MMFL) and subsequently, a merger of MMFL into CAGL. The Board of Directors of CAGL and the Board of Directors of MMFL at their respective meetings held on November 27, 2019 have approved the Transaction.
CAGL will acquire 100% stake in MMFL in a two-step process. In the first leg, CAGL will acquire up to 76.2% stake in MMFL from its existing shareholders for cash and in the second stage, MMFL shall be merged into CAGL through a scheme of arrangement. As part of the merger, the residual shareholders of MMFL will receive shares of CAGL at the share swap ratio proposed in the Scheme.
CreditAccess Grameen is a leading Indian micro-finance institution headquartered in Bangalore, focused on providing micro-loans to women customers predominantly in Rural Areas in India. Its wide range of lending products addresses the critical needs of its customers throughout their life cycle and includes income generation, family welfare, home improvement and emergency loans.
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