Japanese lender Sumitomo Mitsui is preparing to sell its entire 1.65% stake in Kotak Mahindra Bank through block deals, reported CNBC-Awaaz on September 9. The sale would involve 3.28 crore shares, expected to raise around ₹6,000 crore.
Brokerages have already reached out to FIIs and mutual funds to gauge interest in the proposed deal, sources said.
The stake sale comes as Sumitomo seeks funds to finance its planned investment in Yes Bank. Last month, the Reserve Bank of India (RBI) granted approval for Sumitomo Mitsui Banking Corporation (SMBC) to acquire up to 24.99% stake in Yes Bank. Importantly, RBI clarified that SMBC will not be treated as a promoter of Yes Bank, easing additional compliance requirements.
Back in May, Yes Bank and SMBC announced a pact under which the Japanese lender will pick up a 20% stake for nearly ₹14,000 crore, making it one of the largest cross-border M&A deals in India’s banking sector.
The potential stake sale in Kotak is seen as part of SMBC’s strategy to realign its India investments while building a stronger foothold through Yes Bank.
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Source: Moneycontrol
News Desk
