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HSBC not to take management control in UTI Bank
Thursday, 04 December 2003, 20:30 IST
NEW DELHI: Global financial giant HSBC Holdings said Wednesday it would not take management control in India's private sector UTI Bank, in which it has picked up a 14.71 percent stake.
"We are not interested in exercising management control in UTI Bank. The bank will continue to be run by the existing management," Nial Booker, chief executive officer of HSBC India, told a press conference here.
He said the decision to pick up a stake in UTI Bank was part of HSBC's investment plans in India.
In a significant development, HSBC on Tuesday entered into an agreement with CDC Capital Partners and South Asia Regional Fund to acquire their 14.71 percent stake in UTI Bank at a price of 
90 a share.
In line with the Indian government regulations, HSBC is required to make an open offer to UTI Bank's shareholders to buy a further 20 percent stake at the same price, which is 90 a share.
The acquisition has been made through one of HSBC subsidiaries, HSBC Asia Pacific Holdings Limited.
Shares of UTI Bank closed with a gain of whopping nearly 20 percent at 114.10 after HSBC said Tuesday it would buy 14.71 percent in UTI Bank.
Booker said HSBC Holdings would not exercise management control in UTI Bank even after acquiring 20 percent additional stake through the open offer route. He said HSBC had identified India as one of the key markets in the region.
Source: IANS
90 a share.
In line with the Indian government regulations, HSBC is required to make an open offer to UTI Bank's shareholders to buy a further 20 percent stake at the same price, which is 90 a share.
The acquisition has been made through one of HSBC subsidiaries, HSBC Asia Pacific Holdings Limited.
Shares of UTI Bank closed with a gain of whopping nearly 20 percent at 114.10 after HSBC said Tuesday it would buy 14.71 percent in UTI Bank.
Booker said HSBC Holdings would not exercise management control in UTI Bank even after acquiring 20 percent additional stake through the open offer route. He said HSBC had identified India as one of the key markets in the region.
Source: IANS