1. You Are At:
  2. Home
  3. India News
  4. Sumitomo Mitsui Pays $ 293 Million For Stake In Kotak Bank

Sumitomo Mitsui Pays $ 293 Million For Stake In Kotak Bank

Mumbai: Japan's Sumitomo Mitsui Banking Corp. agreed to pay 13.7 billion rupees ($293 million) for a 4.5 percent stake in Kotak Mahindra Bank, sending shares of India's fourth-largest lender up more than 3 percent Wednesday.

PTI [ Updated: June 30, 2010 13:35 IST ]
sumitomo mitsui pays 293 million for stake in kotak bank
sumitomo mitsui pays 293 million for stake in kotak bank

Mumbai: Japan's Sumitomo Mitsui Banking Corp. agreed to pay 13.7 billion rupees ($293 million) for a 4.5 percent stake in Kotak Mahindra Bank, sending shares of India's fourth-largest lender up more than 3 percent Wednesday.


Kotak said it would issue Sumitomo Mitsui 16.4 million shares at 833 rupees ($17.90) per share, higher than Tuesday's closing price of 744.6 rupees on India's National Stock Exchange.

"We see this as a significant opportunity for two financial conglomerates to leverage their strengths to serve the Indo-Japan corridor across a range of financial services," Kotak managing director Uday Kotak said in a statement.

The two companies also said they signed a cooperation agreement to work together on cross-border business, investment and trade, including asset management and investment banking.

Kotak is India's fourth-largest private sector bank by market capitalization, with assets of 551.2 billion rupees ($11.8 billion) and 7 million customers.

Sumitomo Mitsui Banking Corp. is a unit of Sumitomo Mitsui Financial Group, Japan's second-largest banking group, which has $1.37 trillion in total assets.

Sumitomo said it expects the sale, which is subject to shareholder and regulatory approval, to close by September. AP

Live Indian Premier League (IPL) 2018: FULL COVERAGE

VIVO IPL 2018: Click here to get Live Score Updates, Ball-by-Ball Commentary, Schedule, Points Table, Match Timing and Match Analysis.

Promoted Content
four-years-of-modi-govt
Indian T20 League 2018