Dutch financial services company ING has divested its remaining 3% stake in Indian private sector lender Kotak Mahindra Bank.
The latest sale completes the divestment process of the total stake ING acquired in the company following the merger of ING Vysya Bank with Kotak Mahindra Bank in 2015.
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Kotak Mahindra stake sale: Details
ING Mauritius Investments sold 58.4 million Kotak Mahindra Bank shares for INR71.71bn (nearly $1bn) before accounting for statutory levies and transaction costs, according to a Business Today report.
However, the bank did not divulge the name of the buyers.
With the sale, Mark Newman, a non-executive non-independent director at Kotak Bank, has also resigned with immediate effect.
In November 2014, Kotak Mahindra Bank signed an agreement to acquire another domestic rival ING Vysya Bank. The deal, which was valued $2.4bn at that time, was completed in April 2015.
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By GlobalDataAs a part of the merger deal, ING, which was the largest stakeholder in Vysya, owned around 6.5% stake in combined Kotak Mahindra Bank.
In the last four years, the company reduced its stake in Kotak Mahindra in portions, a process which is now completed.
In a statement, ING said: “The transaction will not have a material impact on ING’s profit and loss account, shareholders’ equity or capital ratios.”
Headquartered in Mumbai, Kotak Mahindra Bank offers both corporate as well as retail banking services.
