Acquisitions & Mergers
Sonata Finance is expected to be acquired by Kotak Mahindra for ₹537 crore.
By Admin - 18 Jan 2024 01:18 PM
The Reserve Bank of India (RBI) has given Kotak Mahindra Bank permission to acquire Sonata Finance, a microlender, for a sum of Rs 537 crore. The RBI has allowed Kotak to make Sonata its business correspondent subsidiary, making it a wholly-owned subsidiary of the bank. Through the acquisition, Kotak will be able to further establish itself in northern India's semi-urban and rural areas. Sonata has Rs 1,903 crore .
In a notification to the exchanges, Kotak Mahindra Bank stated that Sonata will become a fully owned subsidiary of the bank upon the completion of the deal (subject to obtaining other necessary approvals).
Subject to the necessary clearances, including the RBI's, the bank had entered into share-purchase agreements with the shareholders of Sonata Finance, an NBFC-MFI, in February with the aim of purchasing a 100% stake for ~537 crore.
In a notification to the exchanges, Kotak Mahindra Bank stated that Sonata will become a fully owned subsidiary of the bank upon the completion of the deal (subject to obtaining other necessary approvals).
Subject to the necessary clearances, including the RBI's, the bank had entered into share-purchase agreements with the shareholders of Sonata Finance, an NBFC-MFI, in February with the aim of purchasing a 100% stake for ~537 crore.
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