India's CreditAccess Grameen Ltd. agreed to acquire and merge with Madura Micro Finance Ltd. in a two-step deal, subject to regulatory and other approvals.

As part of the first step, CreditAccess Grameen will buy up to 76.2% of Madura Micro Finance from Chairman and Managing Director Tara Thiagarajan, AVT Group, Elevar Equity Mauritius and other shareholders for 1,216.16 rupees per share in cash, or 6.66 billion rupees in total. In the second step, CreditAccess Grameen will absorb Madura Micro Finance through a scheme of arrangement.

Under the merger, Madura Micro Finance residual shareholders will get 158 shares of CreditAccess Grameen for every 100 shares of Madura Micro Finance held.

CreditAccess Grameen said Madura Micro Finance will continue to operate as a separate division until the completion of the integration. It will retain all employees of the company and will engage Thiagarajan as an adviser to its board after the proposed merger.

Subject to conditions and approvals, the acquisition is expected to close by March 31, 2020.

Spark Capital Advisors (India) Pvt. Ltd. and Cyril Amarchand Mangaldas are the exclusive financial and legal advisers, respectively, to CreditAccess Grameen for the deal.

As of Nov. 27, US$1 was equivalent to 71.28 Indian rupees.