ING has completed divesting the 3% stake in Kotak Mahindra Bank, which was obtained during the merger of ING Vysya Bank with the Indian bank in 2015.
Image: ING completes stake sale of Kotak Mahindra Bank. Photo: Courtesy of ING Group/Flickr.
ING stated that the stake sale is the last tranche of shares in Kotak Mahindra Bank and the present transaction concludes the divestment process.
The Dutch bank stated that this transaction will not have a material impact on its profit and loss account, shareholders’ equity or capital ratios.
Both the banks will co-operate on cross-border business opportunities and use each other’s network to achieve it.
ING said that it has been supporting its Indian clients’ offshore activities for more than 20 years through its international wholesale banking network spread in 40 countries.
ING agreed to merge its ING Vysya Bank into Kotak Mahindra Bank in November 2014. In the bank, it held a share of 42.7% and was the largest shareholder in Vysya.
As per the transaction, each share in Vysya received 0.725 shares in Kotak. After the merger was completed, ING will hold 6.4% stake in the combined company and was subject to one year lock-up period. The total value of the transaction was €490m.
In April 2015, the merger of ING Vysya Bank with Kotak Mahindra Bank was completed. Established more than 80 years ago, Vysya Bank offered retail, private and wholesale banking services.
In 1999, ING Bank’s predecessor Bank Bruxelles Lambert acquired a stake in Vysya which was increased in 2002 to 42.7%. The stake was held by ING till it was merged with Kotak.
In September 2016, the Dutch bank further decreased its stake of 6.9% in Kotak Mahindra Bank to 3.9%. The sale of the remaining 3% stake was subject to 90 day lock-up period, which occurred on October 2016.
Last December, ING had agreed to acquire a 45% stake in NN Investment Partners Poland, which is expected to lead to additional savings and investment offering for Polish consumers.
ING Bank Śląski will be able to distribute NN IP investment funds to the Polish retail market through the bank’s branch network.