Yes Bank share price jumped over 10% in the opening trade on Tuesday after reports that Japan’s Sumitomo Mitsui Banking Corporation (SMBC) has received approval from the Reserve Bank of India (RBI) to acquire a 51% stake in the private lender.
According to a report by Mint, SMBC has secured the RBI’s nod to become a majority stakeholder in Yes Bank. The proposed transaction may value the lender at approximately $1.7 billion, the report said, citing people familiar with the matter.
The Japanese banking major is considering two options: it may either acquire less than 26% initially and subsequently merge with Yes Bank through a share swap, or it could directly acquire up to 26% and make an open offer. While SMBC’s total holding may eventually rise to 51%, its voting rights will remain capped at 26% in accordance with RBI regulations, the report added.
Currently, State Bank of India (SBI) and other lenders hold 33% in Yes Bank.
