Kotak Mahindra Bank acquires nearly 99.5% stakes in BSS Microfinance
Kotak Mahindra Bank on Friday acquired 99.49% stakes in a microfinance company BSS Microfinance in an all cash deal totaling an aggregate amount of Rs 139.2 crore.
"Pursuant to the Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that the bank has executed a share purchase agreement for acquisition of 99.49% of the equity shareholding of BSS Microfinance Private Ltd (Company) from its existing shareholders," Kotak Mahindra Bank said in a filing to the National Stock Exchange (NSE) on Friday.
The bank has acquired 2,65,91,856 equity shares for Rs 10 each of BSS Microfinance.The cost of acquisition or the price at which Kotak Mahindra Bank has acquired shares of BSS Microfinance is Rs 139.2 crore.
"The transaction is subject to obtaining all necessary regulatory and other approvals, including from the Reserve Bank of India (RBI)," cited the statement.
By acquiring the stakes in BSS Microfinance, Kotak Mahindra Bank aims to cater to the long-term need to embrace financial inclusion as well as to cater to the needs of weaker sections.
BSS Microfinance is a non-banking finance company (NBFC) with a networth of Rs 72.9 crore as of June 30, 2016.
BSS Microfinance extends microfinance to poor rural and semi-urban women, primarily for income generating activities, and also for life quality improving activities. The NBFC company had a turnover of Rs 49.5 crore in the fiscal 2015-16 (FY16).
The completion of the acquisition of BSS Microfinance shares will take around three to four months, Kotak Mahindra Bank said.