Overview

• The Competition Commission of India approved SMBC’s acquisition of specified share capital and voting rights in Yes Bank.
• RBI’s letter dated Aug. 22 grants SMBC approval for up to 24.99% stake for one year while clarifying SMBC will not be treated as a promoter.
• The transaction framework covers 13.9% from SBI and a combined 6.81% from Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank and Kotak Mahindra Bank, the investors from the 2020 reconstruction scheme.
• These clearances pave the way for SMBC to pursue majority control, subject to deal completion and any stipulated regulatory conditions.
• Yes Bank shares closed higher at Rs 19.58 on the day the approvals were reported.