WestBridge to buy 1.74% SKS stake, to emerge second largest holder

HYDERABAD: Global financial investor WestBridge Ventures, which currently holds 4.32% stake in India’s only listed micro lender SKS Microfinance, has agreed to buy another 1.74% stake in the micro lender from another promoter group investor Sequoia Capital.

This deal will make Westbridge, the promoter group investor in SKS, as the second largest stakeholder after SKS Trust Advisors, which currently holds 12.61% stake as of September.

Sequoia Capital currently holds 2.37% stake in SKS by September-end, currently holds 1.74% stake. With the latest sale in favour of WestBridge now, Sequoia will completely exit from SKS.

In a communiqué to stock exchanges after market hours on Tuesday, WestBridge said it has agreed to buy 18.9 lakh shares of SKS on or after November 20, 2013 at Rs 155 a share, translating the deal worth Rs 29.29 crore.

WestBridge also said it holds, along with Kumaon Investment Holdings, persons acting in concert, holds 8.44%. Kumaon holds 4.11% in SKS. Following the latest transaction, WestBridge, along with persons acting in concert, will own 10.18% in SKS.

In its statement, WestBridge said it is exempted from making an open offer under relevant sub-clause of regulation 10(1) (a) of SEBI (Substantial acquisition of shares and takeovers) Regulations, 2011.

Shares of SKS Microfinance on Tuesday closed at Rs 142.25, down by 4.37%, on BSE, while the benchmark Sensex lost 1.02% at 20,281.91 points.