On Friday, YES Bank in a statement said that it has executed a definitive agreement for the sale of 100% of the equity shareholding of YES Asset Management (India) Limited and YES Trustee Limited (YTL) to GPL Finance and Investments Limited. Both the units are wholly owned subsidiaries of Yes Bank Limited.
"White Oak Investment Management Private Limited owns 99% of the Purchaser. The ultimate beneficial holder of the Purchaser is Mr. Prashant Khemka who owns 99.99% of White Oak Investment Management Private Limited," the bank said in a regulatory filing.
"The transaction is subject to requisite regulatory approvals from the Regulatory Authorities," it added.
YES Asset Management is the asset management company of YES Mutual Fund and YTL is the trustee of YES Mutual Fund.
"Upon completion of the transaction, YESAMC and YTL will cease to be subsidiaries of the Bank and the Bank will exit its mutual fund business," the bank said.
The deal is expected to be completed in 8-12 months from execution of the definitive agreement. The agreement for sale has been entered into on 21 August 2020.
The amount to be received from the sale was not disclosed.
In making other disclosures on the agreement, YES Bank said that YES Asset Management's revenue contribution of Rs 3.3 million in the financial year 2019-20 as a percentage of the bank is negligible. It also added that YESAMC's net worth contribution of Rs 497 million in FY20 as a percentage of the bank is negligible.
It further said that YTL's revenue and net worth contribution were "nil" in FY20.
Shares of YES Bank Ltd were trading lower than its previous closing price in the afternoon trading session.