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- Japans Sumitomo Mitsui Banking Corporation SMBC in Talks to Buy Big Stake in Yes Bank
New Delhi5 hours ago
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Yes Bank has a 23.97% stake in SBI.
Japanese company Sumitomo Mitsui Banking Corporation (SMBC) is planning to buy large stake in private sector bank Yes Bank in India. For this, SMBC has started talks with State Bank of India (SBI).
Yes Bank has a 23.97% stake in SBI, out of which it can sell 20% stake to SMBC. Along with this, SMBC can buy more than 6-7% stake from other share holders of Yes Bank.
After this, SMBC will start the process of open offer to get 51% stake in Yes Bank. If this deal is done then it will be one of the biggest acquisitions in the Indian banking sector.
Other shareholders can also sell stake
Other investors of Yes Bank such as Axis Bank, Kotak Mahindra, ICICI and HDFC Bank can also sell their stake. These banks have a total of 7.36% shares of Yes Bank.
Apart from this, Advent and Carlile (9.2% and 6.84% shares) can also sell their shares through open offers. The government company LIC has 3.98% shares in Yes Bank, which can play an important role in the deal.
Yes Bank shares rose by 10% today
Due to the news of the deal, there was a big jump in the stock of Yes Bank on Tuesday. The stock made a day high of Rs 19.44 with a 10% rise.
However, the stock closed at Rs 18 with 1.41% rose. The company’s stock has given a return of 7% in 1 month.
There was talk to buy stake in 2023 too
Earlier in 2023, SMBC wanted 51% of voting rights at Yes Bank, but due to Indian law (26% voting cap), the deal could not be done.
This time the SMBC has accepted the range of 26% voting rights, but the company wants to control the management by nominating its directors in the board of YES Bank.
Yes Bank 1,200+ branches in over 710 countries
Yes Bank, banking and financial survival provides. The bank has 1,200+ branches, 1300+ ATMs and 8.2 million customers in more than 710 countries. Yes Bank founder is Rana Kapoor. He established this bank in 2004. The bank’s managing director and Chief Executive Officer (CEO) is Prashant Kumar.
