India’s Yes Bank gets $1.2bn takeover offer from unnamed tech investor
India’s corporate Yes Bank says it has received a “binding” offer of $1.2 billion from a global investor, with other “advanced talks” in the wings as it looks to raise capital through a fresh issuance of equity shares, Reuters reports.
Following the announcement, which is still subject to regulatory, board and shareholder approvals, Yes Bank saw its stocks soar by 39% to INR 76.65 ($1.08). But year to date, the stock is still down more than 50%.
In September, amidst announcing its plans to raise capital, the bank’s CEO Ravneet Gill said it was close to selling a minority stake to a global technology company, but the investor still hasn’t been named.
CNBC TV18 cited sources that Hong Kong-based SPGP Holdings was the investor in question, and that the proposals would be considered on the 1 November.
According to Mint, Yes Bank was also in talks with Microsoft earlier this month.
“Apart from maintaining minimum capital requirements, the amount is sizeable enough which can take care of future growth as well,” says LKP Securities BFSI Research Analyst Anusha Raheja.