Dutch Financial services, ING group, sold its entire 3.06% stake in the country’s fourth largest private lender by assets-Kotak Mahindra Bank. With the selling of stake, non-executive non independent director of board, Mark Newman also abandoned from his previously held position.
As per the exchange data, ING sold its 5.84 Crore Shares in a bulk deal at $1 billion. Not much information has been released about the deal, including the names of the buyer. As per the new reports, the shares were sold at an average price of ₹1,232, which was 4.5% lower than the price of shares on Thursday.
Earlier in 2014, the lender acquired the ING Vysya Bank, at the time of the deal, ING group owned about 42% stake in the Bangaluru headquartered ING Vysya Bank. And according the negotiated deal, ING had 6.5% stake in the newly merged entity. But later, it sold about half of its stake in Kotak Mahindra and now with this new deal ING group completely exited the leading lender.
The deal impacted negatively on the lenders Share market performance and it closed at 3.71% lower at ₹1,241.05 on BSE. 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 ₹1251.