Japan's SMBC to sell Kotak Bank stake ahead of Yes Bank buy

MUMBAI: Sumitomo Mitsui Banking Corporation (SMBC) is set to sell its entire 1.7% stake in Kotak Mahindra Bank, worth over Rs 6,166 crore, through block deals on NSE and BSE. The Japanese lender is freeing up investment headroom to raise its holding in Yes Bank to nearly 25% after securing all regulatory clearances.According to the term sheet, up to 32.8 million Kotak Bank shares will be offered at a floor price of Rs 1,880 each, a 4.1% discount to Monday's close of Rs 1,960. Jefferies India and Nomura are joint placement agents, with Kotak Securities as broker. Books open Sept 9 and are slated to close Sept 10, with settlement on Sept 11. The sale follows SMBC's strategic shift after its May 9 announcement to buy a 20% stake in Yes Bank via secondary transactions: 13.2% from SBI and 6.8% from seven banks including Axis, HDFC, ICICI and Kotak.SMBC has a long history with Kotak Bank, once holding 3.6% stake.