News Post

Why MUFG is the favourite to win Yes Bank's hand

Livemint · 26d

- Mitsubishi UFJ Financial Group (MUFG) is the frontrunner to acquire a majority stake in Yes Bank as it complies with the regulatory cap on voting rights. - Other potential bidders Sumitomo Mitsui Banking Corp. (SMBC) and Emirates NBD dropped out due to the voting rights cap. - MUFG has hired JP Morgan for advice and is attracted to India's financial services space for its growth prospects. - Talks with MUFG are crucial for Yes Bank as several potential suitors have dropped out in the search for a new owner due to the voting rights cap. - The negotiations with MUFG are focused on a valuation of $8-10 billion, and the deal may involve buying more than 26% of Yes Bank with a voting cap. - Yes Bank's ability to compete with rivals in terms of product offerings and network expansion has suffered due to the absence of an appropriate promoter.