Citigroup buys a stake in HDFC
Economic Times: Citigroup has acquired a 9.27% stake in India’s HDFC. The deal will add to Citigroup’s 3.59% stake that it already has in HDFC. The Rs 3,020-crore deal, once cleared by the regulatory authorities, will make Citigroup the biggest shareholder in HDFC. Citigroup is buying the shares from UK Insurer Standard Life.
Meanwhile, HDFC holds a 21.99% in HDFC Bank (NYSE: HDB). While Citi will emerge as the biggest shareholder in HDFC, it will have no direct holding in HDFC Bank, in which DBS, the Singapore-based bank, acquired over 4per cent. In the past, the market has often speculated about a merger of HDFC and HDFC Bank. In the medium-term, such speculation could be rekindled.