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Khazanah exits Yes Bank at 150% premium; nets $105 mn

Investors will eye Tuesday's statement from the U.S. central bank's Federal Open Market Committee to see whether the Fed will cool down expectations of more easing of monetary policy, which might make it difficult to extend the rally.

Shinzo Nakanishi, Managing Director, Maruti Suzuki India
Shinzo Nakanishi, Managing Director, Maruti Suzuki India

The sovereign investment fund of Malaysian government, Khazanah Nasional, today sold its entire 4.2 per cent holdings in private lender Yes Bank for $105 million (about Rs 520 crore), raking in a premium of "150 per cent" over the past five years.

"Yes, they have monetised their investment at a phenomenal premium of 150 per cent. They came on board in  March 2007 and they sold their entire 4.2 per cent stake in us at Rs 365 per share," Yes Bank founder, managing director and  chief executive Rana Kapoor said .

 When asked about the reason for exit, Kapoor said, "They were keen to increase their stake to 10 per cent by converting  their portfolio investment into a strategic one. But since the Reserve Bank norms do not allow more than 5 per cent stake by a single entity, they decided to monetise their investment at  a very high premium".

With this, the foreign holding in the city-based private lender has fallen below 50 per cent, Kapoor said.

One of the leading foreign investors in the bank include the Netherlands' largest retail bank Rabobank with a 4.8 per cent stake.

Khazanah could not be reached for comments. According to sources Credit Suisse was the book-runner for the deal.

"The premium and the manner in which the shares have been picked up by investors show how attractive an investment that Yes Bank is," Kapoor said, adding in just 30 minutes, the block deal was over.

As per the stock exchange data, Titiwangsa Investments  Mauritius, which is an investment arm of Khazanah, held 14.7 million shares in Yes Bank at the end of December quarter.