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(Photo: Mint)
(Photo: Mint)

Lakshmi Vilas Bank says due diligence for Clix Group deal complete

The bank has shortlisted three firms for a valuation exercise and is likely to finalise one over the next week, said a person aware of the matter

Mumbai: Private sector lender Lakshmi Vilas Bank on Tuesday said that the mutual due diligence for its deal with Clix Group is “substantially complete".

“We wish to inform that the mutual due diligence is substantially complete, and the parties are in discussions on the next steps," the bank said in a regulatory filing.

The bank has shortlisted three firms for a valuation exercise and is likely to finalise one over the next week, said a person aware of the matter.

On 30 July, Lakshmi Vilas Bank had said its deal with the Clix Group might be delayed owing to Covid-19 and both parties have agreed to extend the exclusivity period till 15 September, 2020.

Meanwhile, the bank’s capital adequacy ratio (CAR) as per Basel III guidelines contracted to 0.17% as on 30 June, as against a regulatory minimum of 10.875%. The bank reported a net loss of 112.28 crore in the June quarter of FY21, compared to a loss of 237.25 crore in the same period last year.

“Despite logistical challenges arising due to covid-19 situation, we have made significant progress with Clix Group for the proposed amalgamation of Clix Capital Service Pvt Ltd and Clix Finance India Pvt Ltd into the bank," the bank had said in a regulatory filing in July.

Earlier, on 15 June, the bank had said it signed preliminary, non-binding letter of intent (LoI) with Clix Capital Services Pvt Ltd and Clix Finance India Pvt Ltd in relation to the proposed amalgamation of Clix Group with the bank.

Under the non-binding LoI, the proposed amalgamation is subject to completion of mutual due-diligence in exclusive window of 45 days, and will be subject to regulatory and other customary approvals, the bank had said.


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