SMFG said to eye $1.1 billion additional deal for Yes Bank
(Bloomberg) -Sumitomo Mitsui Financial Group Inc., two months ago after the previous investment made by Japan’s second largest bank, the Indian lending yes Bank Ltd.
SMFG, US Investment Fund Carlyle Group Inc. And one of the other minority shareholders, YES Bank is trying to get about 5% of the shares, says people, said the negotiations are not defined because they are special. SMFG can also purchase about $ 680 million in convertible bonds given by Yes Bank to help increase growth.
He said that the total amount of fresh investment will bring the total amount to $ 2.7 billion and that the SMFG will provide approximately 25% stake in the bank. The issues continue and they said that no final decisions were made.
SMFG, Carlyle and yes Bank Banking Unit Sumitomo Mitsui Banking Corp. Representatives refrained from commenting.
Yes, the bank shares increased their earnings to 3.3% in Mumbai transactions on Tuesday, jumped the largest intraday for more than a month before separating some. The stock was roughly 3% this year and gave the bank a market value of about $ 7.4 billion.
Agreement in India is accelerating as global companies and investors try to address the growth of the country. According to data compiled by Bloomberg, the volume of merger and acquisitions containing Indian companies increased by 14% to $ 31 billion compared to the previous year.
In May, SMFG agreed to purchase 20% shares on Yes Bank. Yes for Japan’s second largest lending, the Bank represents the opportunity to have a big share in a large Indian company. Yes, the Bank made a stable return after being rescued by the Central Bank in 2020, when he was underwater with bad loans, and had to inject new capital with the other parties.
Sumitomo Mitsui and Japanese peers are making agreements in India. In March last year, after purchasing a share of $ 2 billion in 2021, Fullerton India Credit Credit Credit Credit He spent $ 700 million to get full control of the local company known as. Unit specialized in housing and car loans.
