Financial Daily from THE HINDU group of publications
Wednesday, Dec 03, 2003
Financial Daily from THE HINDU group of publications Wednesday, Dec 03, 2003 |
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Foreign Banks Money & Banking - Mergers & Acquisitions HSBC picks up 20 pc stake in UTI Bank Our Bureau
Mumbai , Dec 2 A DAY after its CEO-designate expressed interest in picking up minority stake in Indian banks, HSBC today agreed to buy 20.08 per cent stake in UTI Bank from private equity firm, CDC Capital Partners, at around Rs 90 per share. While sources at HSBC and CDC privately confirmed the deal, an official announcement was awaited at the time of going to press. According to SEBI norms, HSBC's latest acquisition will attract an open offer. This is the second acquisition by a foreign bank in India in the recent past, the first being that by Dutch bank, ING group, in Vysya Bank. HSBC is understood to have bought the 20.08 per cent stake from two private funds - 12.37 per cent from CDC Financial Services (Mauritius) Ltd and 7.71 per cent from the CDC-controlled South Asia Regional Fund. The shareholding pattern of the bank is as follows: UTI Administrator 33.46 per cent, CDC Financial Services (Mauritius) Ltd 12.37 per cent, LIC 13.5 per cent, Citicorp Banking Corporation 3.83 per cent, Chryscapital I, LLC 3.83 per cent, Karur Vysya Bank one per cent, GIC and subsidiaries 7.39 per cent, South Asia Regional Fund 7.71 per cent. The remaining 16.91 per cent is with public. The UK-based CDC Financial Services had bought 26 per cent stake at a little over $32 million in December 2001 at Rs 34 per share, which fell to 20 per cent following subsequent preferential issues by the bank to other investors. CDC had two representatives on the board of the bank - Mr Donald Peck based in Delhi and Mr Paul Fletcher in London. On the NSE, the UTI Bank share closed at Rs 95.80, 11.85 per cent up from its previous close, and witnessed a turnover of Rs 1,194.98 lakh. It closed at Rs 95.10 on the BSE, up 11.16 per cent from the previous close.
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