Federal Bk S Regulatory News (FEDS)

6 Feb 2006 14:23

Merrill Lynch International06 February 2006 Company: The Federal Bank Limited TIDM: FEDS, FEDA Headline: Exercise of Over-allotment option Released: (TIME) 06-Feb-06 Number: ( ) The Federal Bank Limited ** NOT FOR RELEASE OR DISTRIBUTION OR PUBLICATION IN WHOLE OR IN PART IN OR INTO THE UNITED STATES, CANADA, JAPAN OR AUSTRALIA** OVER-ALLOTMENT OPTION EXERCISED THE FEDERAL BANK LIMITED (the 'FEDERAL BANK') (LSE: FEDS) today announced that it received notice on Friday 3 February 2006 that Merrill Lynch International and Citigroup Global Markets Limited (together, the 'Underwriters') wished to exercise in full the option to acquire further shares (the 'Over-allotment Option') which was granted by the FEDERAL BANK to them in their capacity as Underwriters of the public offering of shares (the 'Shares') in the FEDERAL BANK in the form of Global Depositary Receipts ('GDRs' and the 'Offering'). The Over-allotment Option covers 2,000,000 additional Shares in the form of 2,000,000 GDRs (the 'Over-allotment GDRs'), each GDR representing one equity share of par value Rs. 10 in the FEDERAL BANK, which is equivalent to approximately 2.30% of the FEDERAL BANK's equity as of the date of this announcement. The Over-allotment GDRs have been placed with institutional and certain otherinvestors at the offer price of $3.97 per Over-allotment GDR (the "OfferPrice"), raising additional gross proceeds for the Company of $7.94 million.As a result of the exercise of the Over-allotment Option, the total number of Shares allotted in the Offering will increase to 20,000,000 ordinary shares in the form of GDRs or 23.30 % of the FEDERAL BANK's equity as of the date of this announcement. Settlement in respect of the Shares allotted by the FEDERAL BANK in relation to the exercise of the Over-allotment Option is expected to be completed today. *** For further information, please contact: Mr. George John General Manager (Treasury) Federal Towers Federal Bank Marine Drive, Cochin Kerala State, India - Pin 682 031 Phone: 91-484-2385550 Fax: 91-484-2385560 Email: georgejohn@federalbank.co.in--------------------------------------------------------------------------------- *** The FEDERAL BANK is a leading private sector bank in India offering a wide rangeof products and services to corporate, small- and medium-scale enterprises andretail customers through a variety of delivery channels. Since its incorporationin 1931, the FEDERAL BANK has grown both in terms of its physical network ofbranches, extension counters and ATMs, as well as in terms of the size of assetbase. As of 31 December 2005, the FEDERAL BANK had 456 branches and 20 extensioncounters spread over 370 locations, 282 ATMs and 12 regional offices. TheFEDERAL BANK's branches are fully networked and its ATMs are located in morethan 150 cities and towns throughout India. The FEDERAL BANK is a public company established under the laws of the Republicof India. The FEDERAL BANK's shares are listed on the Cochin Stock Exchange,the Bombay Stock exchange and the National Stock Exchange of India (Stockcode:11477 (BSE)). *** This press release is not for distribution or circulation, directly orindirectly, in or into the United States. This press release and any informationpresented herein are not, and are not intended to be, offers to sell norsolicitations of offers to buy the FEDERAL BANK's GDRs, it equity shares or anyof its other securities and shall not constitute an offer, solicitation or salein any jurisdiction in which such offer, solicitation or sale is unlawful. The FEDERAL BANK's GDRs and equity shares have not been and will not beregistered under the U.S. Securities Act 1933, as amended (the "SecuritiesAct"), or any state securities laws in the United States and, as such, may notbe offered or sold in the United States or to, or for the benefit of, U.S.persons (as such term is defined in Regulation S under the Securities Act)absent registration or an exemption from the registration requirements of theSecurities Act and applicable state laws. Any offering of the common shares tobe made in the United States (or to U.S. persons) will be made by means of anoffering circular that may be obtained from the FEDERAL BANK. Such offeringcircular will contain detailed information about the FEDERAL BANK, it businessand its management, as well as financial statements. This communication is directed only at (i) persons who are outside the UnitedKingdom or (ii) investment professionals falling within Article 19(5) of theFinancial Services and Markets Act 2000 (Financial Promotion) Order 2001 (the'Order') and (iii) high net worth entities, and other persons to whom it maylawfully be communicated, falling within Article 49(2) of the Order (all suchpersons together being referred to as 'relevant persons'). Any investmentactivity to which this communication relates will only be available to and willonly be engaged with, relevant persons. Any person who is not a relevant personshould not act or rely on this document or any of its contents. This press release is not a public offer or advertisement of securities in theRepublic of India, and is not an offer, or an invitation to make offers, topurchase any securities in the Republic of India. *** Certain statements in this press release are not historical facts and are'forward-looking' within the meaning of Section 27A of the Securities Act andSection 21E of the US Securities Exchange Act of 1934 (hereinafter, the ExchangeAct). Forward-looking statements include statements concerning the FEDERALBANK's plans, expectations, projections, objectives, targets, goals, strategies,future events, future revenues or performance, capital expenditures, financingneeds, plans or intentions relating to acquisitions, the FEDERAL BANK'scompetitive strengths and weaknesses, plans or goals relating to forecastedproduction, reserves, financial position and future operations and development,the FEDERAL BANK's business strategy and the trends we anticipate in theindustries and the political and legal environment in which the FEDERAL BANKoperates and other information that is not historical information. By their verynature, forward-looking statements involve inherent risks and uncertainties,both general and specific, and risks exist that the predictions, forecasts,projections and other forward-looking statements will not be achieved. Such forward-looking statements speak only as of the date on which they aremade. Accordingly, the FEDERAL BANK does not undertake any obligation to updateor revise any of them, whether as a result of new information, future events orotherwise. The FEDERAL BANK does not make any representation, warranty orprediction that the results anticipated by such forward-looking statements willbe achieved, and such forward-looking statements represent, in each case, onlyone of many possible scenarios and should not be viewed as the most likely orstandard scenario. Merrill Lynch International and Citigroup Global Markets Limited are actingexclusively for the FEDERAL BANK and no one else in connection with the Offeringand will not be responsible to any other person for providing the protectionsafforded to their client or for providing advice in relation to the Offering. This information is provided by RNS The company news service from the London Stock Exchange