By Saloni Shukla
Copyright indiatimes
Japanese lender Sumitomo Mitsui Banking Corporation (SMBC) on Wednesday said it will acquire an additional 4.2% stake in Yes Bank from a Carlyle Group affiliate for Rs 2,850 crore. The announcement comes alongside the completion of its earlier purchase of a 13.18% stake from State Bank of India (SBI) for Rs 9,000 crore.“SMBC has signed a definitive agreement with CA Basque Investments, a company affiliated with The Carlyle Group, to acquire an additional 4.2% equity stake in Yes Bank,” the bank said in a statement. “The per-share purchase price of this acquisition is the same as the initial deal, with the total consideration at around Rs 28.5 billion.”The deal is expected to close once conditions precedent are met, after which SMBC’s holding in Yes Bank will rise to 24.2%. SMBC has received the RBI’s approval to raise its stake in Yes Bank up to 24.99%. Two SMBC-nominated non-executive directors will join Yes Bank’s board, following which the lender will be treated as an equity affiliate of the SMBC Group.Also read: Bandhan Bank completes divestment in Yes Bank to Japan’s SMBCSMBC said the move underscores its commitment to strengthening its India presence and supporting Yes Bank’s sustainable, long-term growth.Live EventsIn a parallel move to rebalance its strategic portfolio, SMBC exited Kotak Mahindra Bank by selling its entire 1.65% stake.Meanwhile, SBI said it will continue to hold a 10% stake in Yes Bank following the divestment. SBI and seven other private banks – HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Axis Bank, IDFC First Bank, Federal Bank and Bandhan Bank – had signed a definitive agreement with SMBC to jointly sell 20% stake at Rs 21.50 a share. These banks had subscribed to the shares at Rs 10 each in 2020.“This is perhaps the best example of safeguarding customer interests in a large bank through the collaborative efforts of SBI and other lenders, under the guidance of the Government of India and the RBI,” said SBI Chairman Challa Sreenivasulu Setty. “SMBC’s global expertise will be a strong complement to Yes Bank’s progress and future ambitions.”Also read: SBI completes divestment of 13.18% stake in Yes Bank to Japan’s SMBC for ₹8,889 croreIn addition, SMBC is in talks with Yes Bank to infuse Rs 16,000 crore in the lender through a combination of debt (Rs 8,500 crore) and equity (Rs 7,500 crore), as reported by ET on August 29. The board of the bank has secured shareholders’ approval for the fundraising.In August, the RBI approved SMBC’s application to raise its stake in the bank while in early September the Competition Commission of India gave its nod to the proposal.Add as a Reliable and Trusted News Source Add Now!
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(You can now subscribe to our Economic Times WhatsApp channel)Read More News onyes bankbandhan bankSMBCPE firm Carlyle Groupyes bankState Bank of Indiaca basque investmentscarlyle groupSMBC GroupKotak Mahindra Bank(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online….moreless
