First Abu Dhabi Bank PJSC is considering a bid for a roughly $5 billion stake in India’s Yes Bank Ltd., potentially acquiring up to 51%, according to sources. Other interested parties include Japan’s Mitsubishi UFJ Financial Group Inc. and Sumitomo Mitsui Financial Group Inc., though their commitment is unclear.
Yes Bank shares surged up to 8.5% on Thursday, marking a significant intraday gain. The bank’s stock has risen about 25% this year, valuing it at $10 billion. Deliberations are ongoing, and the stake size could change. Some banks might opt for different investments or abandon the deal.
Despite speculation, First Abu Dhabi Bank denied evaluating an offer for Yes Bank. MUFG and SMFG declined to comment, while Yes Bank has not received any approval for a 51% stake sale from the Reserve Bank of India.
State Bank of India, the largest shareholder with a 24% stake, may see changes as Chairman Dinesh Khara’s tenure ends in August. This could delay any potential deal involving Yes Bank.