Japan’s Sumitomo Mitsui Banking Corporation (SMBC) on Wednesday announced that it would invest Rs 1,366 crore for a 4.5 per cent stake in private sector lender Kotak Mahindra Bank.
The bank has entered into an agreement with Sumitomo Mitsui Banking Corporation to sell 1.64 crore shares at Rs 833 a piece, aggregating to Rs 1,366 crore, Kotak Bank said in a filing to the Bombay Stock Exchange.
The selling price for Kotak shares is 12 per cent higher than Tuesday’s closing on the BSE.
The agreement for stake sale comes a week after the Dutch financial services company ING exited Kotak Bank by selling its entire 3 per cent stake for Rs 801.1 crore.
Soon after the announcement, the shares of the country’s fourth largest private sector lender surged 3.52 per cent to a high of Rs 746.65.
“We are delighted to welcome a reputed and large global financial institution of the stature of SMBC as our shareholder, as the Indian financial services industry continues its high growth trajectory,” Kotak Bank vice-chairman and MD, Mr Uday Kotak, said.
The cooperation would cover various businesses of mutual interest, including asset management, alternate assets, investment banking, and wholesale banking. The banks expect the deal to close by September 2010.
The statement said the two banks would leverage their strengths to serve the Indo-Japan corridor across a plethora of financial services. — PTI