Sumitomo Mitsui Banking Corporation (SMBC) has reached an agreement with CA Basque Investments, an affiliate of the global investment firm The Carlyle Group, to increase its equity stake in YES Bank by an additional 4.2%.
The agreement follows the completion of SMBC’s initial acquisition of a 20% stake in the Indian private commercial bank.
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SMBC acquired this stake through a secondary purchase of shares from State Bank of India (SBI) and additional bank investors.
The transaction for the additional stake is valued at approximately Rs 28.5bn ($323.38m), consistent with the per share purchase price of the initial acquisition.
In May, the initial deal for the 20% stake was estimated at Rs 134.8bn ($1.57bn), comprising a 13.19% purchase from SBI and a 6.81% combined stake from other banking entities.
Following the fulfilment of all preconditions, including regulatory consents, SMBC has announced the completion of the initial stake acquisition.
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By GlobalDataThe investment will also lead to the appointment of two SMBC-nominated non-executive directors to the Board of Directors at YES Bank, which will now be associated with the SMBC Group as an equity-method affiliate.
The Japanese corporation aims to “promptly” finalise the additional stake acquisition upon meeting the remaining conditions precedent, which will elevate SMBC’s shareholding in YES Bank to 24.2%.
Commenting on the deal completion, YES Bank CEO and MD Prashant Kumar said: “The completion of this transaction is a defining moment for YES Bank. We are privileged to welcome SMBC as our largest shareholder and Board participant.
“With the combined sponsorship of SMBC, backed by SMFG’s global scale, and SBI, India’s most trusted bank, YES Bank is uniquely positioned to grow stronger, expand Japan–India business flows, and deliver long-term value for all stakeholders.”
According to its website, YES Bank has a network of over 1,200 branches across India.
In a move to adjust its investment portfolio, SMBC has also sold its entire 1.65% equity stake in another Indian private‑sector commercial bank Kotak Mahindra Bank.
