We invite proposals from interested Chartered Accountant firms (hereinafter referred to as “Valuer”) to provide Independent Valuation Service for the proposed merger of Bharatiya Mahila Bank Limited (“Target Bank”) with State Bank of India (“SBI” or “Acquirer”)
1. Proposal
The Target Bank intends to get acquired by the Acquirer and would like to undertake a valuation exercise and determine the swap ratio for the proposed merger.
2. Scope of Work
The Scope of work for the Valuer valuing BMBL would entail the Valuer to value the BMBL and also work with the independent valuers of the Acquirer to arrive at a valuation for BMBL and also gain comfort on the valuation of Acquirer Bank prepared by their valuers to issue/ sign a joint swap ratio report along with the valuer of the Acquirer.
The Valuer must adopt all market prevalent practices/ principles for arriving at the valuation (including principles specified by the RBI and the Ministry of Finance), and must submit a joint report along with the valuer of Acquirer, indicating the Swap Ratio for the merger of BMBL into SBI. Consequently, the Valuer would be required to issue one single joint report on the suggested Swap Ratio.
3. Eligibility Criteria
Bidders should be a Company / Firm registered in India with prior experience in providing Valuation Services for the purpose of acquisition in the Financial Services sector. Valuation experience for acquisition of Bank is desirous.
4. Submission of Proposal
Proposals are required to be submitted as per the following directions:
i) Envelope 1 containing the following:
- Detailed proposal highlighting the credentials in Valuation
- Expertise in the Financial Services sector
- Proposed methodology for the work
- Details of the team members proposed for the transaction.
- Authority letter authorizing the person of the bidder to sign the proposal and other documents;
ii) Envelope 2 (Financial Bid)
- Containing the Financial Bid as a lump sum amount for the entire activity in a sealed envelope. The Financial Bid should be submitted including all out of pocket expenses and any applicable taxes except Service Tax.
The proposal can be submitted latest by 1500 hours on 28th July 2016 to the Finance & Accounts Department, Bharatiya Mahila Bank Ltd, 9th Floor, IFCI Tower, 61, Nehru Place, New Delhi — 110019 in hard copies in original, duly signed by the Authorized Officer of the Consultant. No proposal will be entertained after the appointed time and date. Bank or any of its officials will not be responsible for any postal / courier delay. The proposals received after the appointed time and date will be rejected.
Bank reserves the sole right to accept or reject any or all Proposals thus received without assigning any reasons thereof.
5. Procedure for Selection of Consultants
The proposal of the Valuer will be reviewed by a Committee and the same will be scored based upon the technical capabilities and credentials of the bidder. The Valuer may be called for presentation and the date for the presentation will be intimated in due course. The Financial bids will be opened and will be scored proportionately, starting with the lowest bidder getting the highest mark. The date of opening of the financial bids will be intimated separately. The final selection of the Valuer will be done based on a combined matrix of Technical and Financial Score. The committee will use its prudence in finalizing the appointment so as to maintain independence of valuers between that of the Acquirer and Target Bank. The decision of the committee on the matter of selection will be final and binding.
