Our Bureau
Mumbai
The Japanese lender Sumitomo Mitsui Banking Corporation (SMBC) is gearing up to sell its entire 1.7% stake in Kotak Mahindra Bank. The stake is worth over Rs 6,166 crore and the SMBC are looking to sell it through the block deals on National Security Exchange (NSE) and Bombay Stock Exchange (BSE).
This was shocking news as SMBC has had a long history with Kotak Bank, and once held 3.6% stake in the company. It is being reported that the Japanese corporation is clearing up its stake in Kotak Mahindra Bank in order to raise its holding in Yes Bank and make it nearly 25% after securing all regulatory clearances.
As per the term sheet, around 32.8 million Kotak Bank shares will be offered at a floor price of Rs 1,880 each which is 4.1% less than the price at which they closed on Monday, 7th September, at Rs 1,960. Jefferies India and Nomura are both joint placement agents while Kotak Securities acts as broker.
It is being reported that the books opened on September 9th and are slated to close on September 10th, with settlement on September 11th. The sale follows SMBC’s strategic shift after their previous announcement, a few months back. On May 9th, SMBC had announced that they were buying 20% stake in Yes Bank via secondary transactions: 13.2% from SBI and 6.8% from seven banks including Axis, HDFC, ICICI and Kotak.
