Microfinance institution CreditAccess Grameen has signed definitive agreements for acquisition of a controlling majority in Madura Micro Finance. This is to pave the way for a subsequent merger of the 2 MFIs. CreditAccess Grameen will acquire 100% stake in Madurai Micro Finance in a 2-step process. In the first leg, it will acquire up to 76.2% stake from the existing shareholders of Madurai Micro Finance for cash and in the second stage, the final merger will take place through a scheme of arrangement. The residual shareholders of Madurai Micro Finance will receive shares of CreditAccess Grameen at the share swap ratio proposed in the scheme. The business acquired will continue to operate as a separate division of Credit Access Grameen until the integration of business and processes is complete. All employees of Madurai Micro Finance will become employees of CreditAccess Grameen.
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