Kotak MahindraBank Ltd. will acquire BSS Microfinance Pvt. Ltd., a nonbankingfinance company, for 1.39 billion Indian rupees in an all-cash transaction.
The bank executed a deal to buy 99.49% of equity shares ofBSS Microfinance from its existing shareholders, according to a Sept. 30release.
The deal is subject to regulatory approvals, including thatof the Reserve Bank of India.
The move will allow Kotak Mahindra Bank to access BSSMicrofinance's growing customer base, which stood at 217,000 customers as ofJune 30. The company has a network of 78 branches.
Following the completion of the deal, BSS Microfinance willbecome a subsidiary of Kotak Mahindra Bank.
Deloitte Touche Tohmatsu India LLP and M2i Consulting undertookthe due diligence review for Kotak Mahindra Bank, while Cyril AmarchandMangaldas acted as the bank's legal adviser. Kotak Mahindra Capital Co. actedas the bank's investment banker.
As of Sept. 30, US$1was equivalent to 66.58 Indian rupees.