Spandana Sphoorty to Refine Criss Financial Merger Terms After Full Subsidiary Integration

Spandana Sphoorty Financial Limited (SSFL) has announced a key development in its proposed amalgamation with Criss Financial Limited (CFL) after acquiring the remaining equity shares held by non-promoter shareholders. With this acquisition, Criss Financial has become a wholly-owned subsidiary of Spandana Sphoorty, prompting the company to revisit the existing merger structure.

The development marks an important milestone in the integration process and is expected to simplify the proposed amalgamation.

Criss Financial Now Fully Owned by SSFL

Prior to the latest acquisition, Spandana Sphoorty already held 99.92% of Criss Financial’s equity share capital. Following the purchase of the remaining shares, the company now owns 100% of CFL.

The complete ownership eliminates minority shareholding, making the corporate structure simpler and potentially easing the merger process.

Merger Scheme to Be Re-Evaluated

In light of the changed ownership structure, SSFL has decided to review the existing Scheme of Arrangement that was originally proposed for the amalgamation.

The company stated that:

• The existing merger scheme will be re-evaluated.
• Revised proposals will be submitted to the Merger Steering Committee.
• The Board of Directors will consider and approve a fresh merger proposal based on the updated ownership structure.

The revised scheme is expected to better reflect the fact that Criss Financial is now a wholly-owned subsidiary.

Benefits of the New Structure

The change in ownership is expected to make the integration process more efficient.

Potential advantages include:

• A simpler merger process without minority shareholder considerations.
• Faster operational integration between the two entities.
• Improved corporate governance and administrative efficiency.
• Greater flexibility in designing the final amalgamation structure.