Public sector Bank of Baroda (BoB) is seeking buyers for its New Zealand subsidiary, according to a document on the bank’s website. The bank has sought interest from investment banks to help it find a buyer for Bank of Baroda (New Zealand) Ltd (BoB NZL)one of its eight overseas subsidiaries.
Incorporated in 2008, BoB NZL was the first Indian Bank in New Zealand. It has two branches in Auckland and Wellington.
It has total capital of NZ$40 million with total assets of NZ$138 million at the end of March 2023. Its net profit increased to NZ$1.97 million in March 2023 from NZ$1.46 million a year ago.
Investment banks and consultants will have to identify, meet and communicate with potential buyers. They will also have to prepare confidential information and market the sale and be involved in the financial advisory service including due diligence and arranging for the valuation of business.
Investment banks have time till October 3 to ask any queries and have to submit a proposal by October 21.
Investment banks and consultants will be paid Rs 10 lakh at the time of finalization of information memorandum. Post the conclusion of sale the bank will deduct Rs 10 lakh and pay the remaining fees after due regulatory approvals are received.
All costs and expenses including legal counsel, valuation, etc. (whether in terms of time or money) will be incurred by the investment banks.
BoB has been winding down its overseas operations and is also seeking value in its subsidiaries like Nainital Bank and BoB Financial Solutions, its credit card subsidiary.
