Today, on Tuesday, there was a special movement in the shares of Yes Bank. In early trade, Yes Bank shares rose 9.6 percent to Rs 19.44 per share on the National Stock Exchange (NSE). However, there was some decline in the afternoon trade. The bank’s shares are trading at Rs 18.11 per share with some decline. In the last trading session, Yes Bank shares closed at Rs 17.73 per share.
Deal is being done with a Japanese company
Actually, Japan’s Sumitomo Mitsui Banking Corp (SMBC) is in talks with the bank to buy 51 percent stake in Yes Bank. If the deal is confirmed, it will probably be considered the biggest deal ever in India’s banking sector. Earlier in the year 2020, Lakshmi Vilas Bank, which was struggling with poor financial condition, was merged with Singapore’s DBS Bank. After this, such a big deal has not happened in the banking sector of the country till now.
SMBC in Talks to Acquire 51% Stake in Yes Bank
SMBC, a unit of Japan’s second largest bank Sumitomo Mitsui Financial Group, has been in talks with Yes Bank‘s largest investor State Bank of India and Reserve Bank since last year, but the talks are stuck on ownership and voting rights. It is being told that SMBC has got approval from RBI to buy 51 percent stake in Yes Bank. It is also being told that SMBC is also in talks with SBI to finalize this deal.
This is how much the deal will be done
According to the report, this deal can be valued at $ 1.7 billion (about Rs 14,000 crore). Sumitomo will either buy less than 26 percent stake directly and merge through share swap or buy 26 percent stake and bring an open offer. This can give control of the bank to Sumitomo, which will be a big strategic change.
