‘Speculative in nature’: YES Bank on reports claiming Dubai’s Emirates NBD likely to buy stake
Summary
YES Bank Share Price | Stock exchanges had sought clarification from YES Bank after media reports claimed that Dubai’s largest lender Emirates NBD is considering submitting a bid to acquire a majority stake in the bank.
YES Bank shares rose up to 5% on Tuesday, April 23, after media reports suggested that Emirates NBD has expressed preliminary interest in acquiring a majority stake in the private lender.
YES Bank shares gained as much as 5.15% to hit a high of ₹26.5 apiece on the NSE in early trade. The stock was trading 2.38% higher at ₹25.8 apiece at 11.45 am.
Shares of YES Bank also jumped more than 5% on the BSE to hit an intraday high of ₹26.5 after a gap up opening.
Meanwhile, YES Bank in a clarification to the stock exchanges on the media reports termed the news as ‘speculative’. “The Bank would like to clarify that the contents of the said article are speculative in nature and the bank does not feel that it is appropriate to comment on market speculations,” YES Bank said in the filing.
“Further, we would like to clarify that presently, there are no material events which are required to be disclosed under Regulation 30 of the Listing Regulations,” the bank stated.
YES Bank said it will keep the stock exchanges informed of any material events as required under the SEBI regulations.
Stock exchanges had sought clarification from YES Bank after media reports claimed that Dubai’s largest lender Emirates NBD is considering submitting a bid to acquire a majority stake in the bank.
Quoting two people familiar with the development, the report mentioned that Emirates NBD has expressed preliminary interest and Emirates NBD is exploring this opportunity. Bids were expected to submitted by the end of the month
Earlier it was reported that Japan’s Mitsubishi UFJ Financial Group and Sumitomo Mitsui Banking Corp were also interested in submitting a bid for YES Bank. State Bank of India, which holds around 26% stake in YES Bank, plans to sell its stake in the private lender. SBI acquired a stake in 2020 to bail out crisis-ridden YES Bank. Three-year lock-in period for investors ended in March 2023.
Besides SBI, Life Insurance Corp, and private lenders HDFC Bank, ICICI Bank, Axis Bank Kotak Mahindra Bank and IDFC First Bank hold around 13.84% stake in YES Bank.
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