From 24 January 2021 to 30 January 2021, the banking industry finally saw an increase in mergers and acquisitions, following three weeks of declining transaction numbers.
There were 24 deals this week, when compared to 19 deals the previous week. Amongst the 24 deals were 21 acquisitions, 2 mergers and 1 asset transaction.
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Most notably this week, US-based Stock Yards Bancorp Inc signed an agreement to acquire 100% of Kentucky Bancshares Inc, a bank holding company of Kentucky Bank, for $190m in the US on 27 January.
Under the terms of the agreement, Kentucky Bancshares’ shareholders will have the right to receive 0.64 shares of Stock Yards Bancorp’s common stock and USD4.75 in cash for each share of common stock of Kentucky Bancshares with total consideration to consist of approximately 85% stock and 15% cash.
James Hillebrand, chairman of Stock Yards Bancorp, commented: “This transaction expands our presence into the attractive Central Kentucky market and represents a complementary fit, both strategically and culturally, with our business model.”
Keefe Bruyette & Woods served as financial advisor whilst Frost Brown Todd PLLC acted as legal counsel to Stock Yards Bancorp.
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By GlobalDataWith an existing stake of 18.3% in 86 400 Holdings, National Australia Bank Ltd (NAB) acquired the remaining 81.7% shares for $169.5m in Australia on 28 January 2020.
National Australia Bank Ltd (NAB) is a provider of personal, business, and private banking services whilst 86 400 Holdings Ltd is an operator of digital bank that offers accounts, home loans and other financial services.
In connection with the transaction, NAB will integrate 86 400 into its in-house digital bank competitor – Ubank. Both companies will continue to operate as separate businesses until the transaction is finalised.
The same day, Sundaram Asset Management Company, a wholly owned subsidiary of Sundaram Finance, agreed to acquire a 100% stake in Principal Asset Management, Principal Trustee Company Pvt. Limited and Principal Retirement Advisors Pvt. for $46.3m in India on 28 January 2020.
The three acquired firms are providers of investment management and financial services. Subramaniam, managing director of Sundaram Asset Management Company believed the transaction would strengthen the firm’s presence in the market through the addition of a variety of schemes with a strong long-term performance track record across large and mid-cap segments.
Subramaniam said: “This will complement our business which has traditionally been weighted towards the mid- and small-cap segment.”
Swedish-based Catella AB divested it’s 50.1% stake in subsidiary Catella Asset Management SAS for a cash purchase price of $18.3m in France on 29 January.
The divestment is expected to have a positive effect on profit after tax, including transaction costs, of approximately SEK 122 million during the first quarter of 2021.
Concerning geographical segmentation of the deals, North America dominated with 14 deals, followed by Europe and Asia-Pacific with 5 and 4 deals, respectively. South and Central America registered the fewest deals with a total of 1.
