Overview
- Sumitomo Mitsui Banking Corporation (SMBC) is set to acquire a 20% stake in Yes Bank for Rs 13,482 crore, purchasing shares from SBI and seven private lenders.
- The deal, priced at Rs 21.50 per share, is subject to approval from the Reserve Bank of India (RBI) and the Competition Commission of India (CCI).
- Yes Bank's stock has rallied over 21% in the past five trading sessions, with Moody's rating the acquisition as credit positive for the bank.
- SMBC will gain the right to nominate two non-executive directors to Yes Bank's board, while SBI's board representation will be reduced to one director.
- Yes Bank has engaged Egon Zehnder to lead its search for a new CEO, as analysts express mixed views on the bank's long-term business fundamentals.