ING Group exits Kotak Mahindra Bank, sells 3% stake for Rs 7,171 crore
According to exchange data, ING Mauritius Investments sold 5.84 crore Kotak Mahindra Bank shares through bulk deals on the NSE for Rs 7,171.21 crore ($1 billion) before accounting for statutory levies and transaction costs.
Dutch financial services major ING Group on Friday sold its entire 3.06 per cent stake in Kotak Mahindra Bank, the country's fourth-largest private-sector lender by assets, through two block deals on the National Stock Exchange. With ING Group's exit, Mark Newman, a non-executive non-independent director at Kotak Bank, has resigned with immediate effect.
According to exchange data, ING Mauritius Investments sold 5.84 crore Kotak Mahindra Bank shares through bulk deals on the NSE for Rs 7,171.21 crore ($1 billion) before accounting for statutory levies and transaction costs. However, the bank did not disclose the name of the buyers. However, the bank did not disclose the name of the buyers.
In his resignation letter, Mark Newman requested the board of directors of the bank to authorise and approve all necessary actions and filings including filing of necessary e-forms with the Registrar of Companies, as required to be made by the bank.
In November 2014, Kotak Mahindra Bank acquired Bengalaru-headquartered ING Vysya Bank in an all-stock deal. ING was the largest shareholder in Vysya with a shareholding at the time of announcement of the merger of 42.7 per cent. Under the terms of merger agreement, ING held a stake of 6.5 per cent in the combined company, which will operate under the Kotak brand. In the last four year, ING Group has sold more than half of its holding in the lender.
Weighed down by the development, shares of Kotak Mahindra Bank closed 3.71 per cent lower at Rs 1,241.05 apiece, compared to the previous close of Rs 1,288 on Bombay Stock Exchange. The stock fell as much as 4.26 per cent to touch an intra-day low of 1,234 after opening 2.9 per cent lower at Rs 1251.
Kotak Bank was among the top laggards on the Bombay Stock Exchange, with 46.65 lakh shares changing hand over the counter as compared to two-week average of 5.41 lakh shares.
The bank reported a 22.5 per cent year-on-year (YOY) rise in standalone net profit at Rs 1,290.93 crore for December 2018 quarter, against Rs1053.21 crore for Dec-17.
Edited by Chitranjan Kumar