The Indian central bank has approved private equity firm Blackstone’s acquisition of up to a 9.99% stake in Federal Bank, the private lender said on Thursday.
The deal, which would make Blackstone the largest shareholder in the bank, adds to the growing list of large investments by marquee investors in the financial services sector in India.
Blackstone, in October, had agreed to invest around $700 million in Federal Bank for a 9.99% stake.
The private equity firm’s investment will be done through a Singapore-based affiliate, with the agreement giving Blackstone the right to nominate a non-executive director to the lender’s board, Federal Bank had said.
Dealmaking in India’s private banking sector has gained momentum over the past year.
Dubai-based Emirates NBD agreed to buy a 60% stake in RBL Bank in October, while Japan’s Sumitomo Mitsui Banking Corporation purchased a 20% stake in Yes Bank in May, followed by an additional 4.2% stake in September.
Reuters
