According to four persons familiar with the matter, Japan’s Mitsubishi UFJ Financial Group (MUFJ) and Sumitomo Mitsui Banking Corp. (SMBC) have shown interest in and are contemplating a proposal to purchase the majority of Yes Bank.
According to three of the individuals above, there has also been interest from another Middle Eastern corporation. This comes as the group headed by the State Bank of India, which rescued the firm in 2020, is now considering selling its ownership.
By the close of business on Friday, Yes Bank was valued at Rs 69,762 crore. A majority interest worth at least 51% at the present price would be Rs 35,578 crore. With a 26.13 percent stake, SBI is by far the biggest stakeholder.
Conclusion
As the transaction is still in its very early stages, MUFG and SMBC are still assessing the possibilities and have yet to make a decision. One of the individuals mentioned above said, “Both are eager to increase their footprint in a developing market like India. Two more individuals also attested to the fact that SMBC and MUFG were involved in the planned merger and that preliminary talks had started.
