Dutch financial services company ING Group is selling a USD 300 million stake in Indian lender Kotak Mahindra Bank Ltd in a block trade on Thursday, according to a deal term sheet seen by Reuters.
The deal has an upsize option of up to USD550 million, according to the term sheet, an informal paper with the deal terms for market participants. The contents of the term sheet were separately confirmed by a source with direct knowledge.
An ING spokeswoman confirmed the company was selling part of its stake in Kotak Mahindra. “We will disclose further details at closing,” the spokeswoman said.
ING is selling the shares in a price range of 774.50 rupees to 782.30 rupees apiece. Ahead of the news, Kotak Mahindra shares closed at 782.30 rupees in Mumbai trading on Wednesday.
The base deal size constitutes 1.39 percent of Kotak Mahindra, while an upsize will mean 2.54 percent of the lender. ING owned a 6.42 percent stake in Kotak Mahindra as of end-June, according to stock exchange data.
(Reporting by Manoj Rawal and Devidutta Tripathy; Editing by Adrian Croft)