Latest news with #SMFG
Yahoo
4 days ago
- Business
- Yahoo
Sumitomo Mitsui Financial (SMFG) Invests Big in AI and Digital Growth
Sumitomo Mitsui Financial Group, Inc. (NYSE:SMFG) is one of the 13 Best Japanese Stocks to Buy According to Hedge Funds. On July 8, Sumitomo Mitsui Financial Group, Inc. (NYSE:SMFG) announced the appointment of Mr. Ahmed Jamil Mazhari to lead transformation efforts aimed at speeding up the company's AI strategy and integration across the group. In partnership with Mr. Mazhari, Sumitomo Mitsui Financial Group, Inc. (NYSE:SMFG) also plans to create a new company in Singapore focused on agentic AI solutions. This new company will first serve the group as 'customer zero' before offering its services to other clients and expanding to the broader market. A corporate lawyer explaining the terms of a contract to a customer in a contemporary office. To support its digital transformation, Sumitomo Mitsui Financial Group, Inc. (NYSE:SMFG) has committed an initial IT investment of JPY 800 billion. Out of this, JPY 50 billion has been specifically set aside for generative AI efforts until the next medium-term management plan. Sumitomo Mitsui Financial Group, Inc. (NYSE:SMFG) is a Japanese financial services group and holding company. While we acknowledge the potential of SMFG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best American Semiconductor Stocks to Buy Now and 11 Best Fintech Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.
Mint
5 days ago
- Business
- Mint
SMFG said to eye $1.1 billion additional deal for Yes Bank
(Bloomberg) -- Sumitomo Mitsui Financial Group Inc. is considering making an additional $1.1 billion investment in Indian lender Yes Bank Ltd., people familiar with the matter said, following a previous investment made by Japan's second-biggest bank two months ago. SMFG is seeking to acquire about 5% of Yes Bank shares from US investment fund Carlyle Group Inc. and other minority shareholders, the people said, asking not to be identified because the deliberations are private. SMFG may also buy about $680 million in convertible bonds issued by Yes Bank to help boost growth, the people said. The fresh investment would bring the total amount to $2.7 billion, giving SMFG a roughly 25% stake in Yes Bank, the people said. Considerations are ongoing and no final decisions have been made, they said. Representatives for Sumitomo Mitsui Banking Corp., the banking unit of SMFG, Carlyle and Yes Bank declined to comment. Yes Bank shares extended their gains to as much as 3.3% in Mumbai trading on Tuesday, their biggest intraday jump in more than a month, before paring some of them. The stock has added roughly 3% this year, giving the bank a market value of about $7.4 billion. Dealmaking in India is accelerating as global companies and investors seek to tap the country's growth. The volume of mergers and acquisitions involving Indian companies has reached $31 billion, a 14% increase from a year earlier, according to data compiled by Bloomberg. SMFG in May agreed to acquire a 20% stake in Yes Bank for about $1.6 billion. For Japan's second-biggest lender, Yes Bank represents an opportunity to own a sizeable stake in a large Indian firm. Yes Bank has made a steady turnaround following a rescue by the central bank in 2020 when it was inundated with bad loans, and SBI had to inject new capital with other parties. Sumitomo Mitsui and its Japanese peers have been sealing deals in India. It spent $700 million in March last year to take full control of the local company formerly known as Fullerton India Credit Co. after first buying a $2 billion stake in 2021. The unit specializes in housing and car loans. Disclaimer: This story has been published from a wire agency feed without modifications to the text.
&w=3840&q=100)
Business Standard
5 days ago
- Business
- Business Standard
Japan's SMFG considers making additional $1.1 bn investment in YES Bank
Nearly two months after acquiring a significant stake in private lender YES Bank, Japanese financial major Sumitomo Mitsui Financial Group (SMFG) is considering an additional investment of around $1.1 billion, Bloomberg reported on Tuesday. According to the report, the deal would involve SMFG acquiring 5 per cent stake from the United States (US)-based investment fund Carlyle Group and other minority shareholders. Additionally, the Japanese major may also buy about $680 million in convertible bonds issued by YES Bank to help boost growth, the report added. Earlier this year, SMFG acquired a 20 per cent stake in Yes Bank for approximately $1.6 billion. State Bank of India and seven private lenders that had invested in YES Bank during its reconstruction in 2020, sold their stake to SMFG then. If the latest deal goes through, its total shareholding in the Indian bank will rise to 25 per cent. However, according to Bloomberg, the deal is still under consideration with no financial decision made yet. Importantly, the proposed increase keeps SMFG just under the 26 per cent threshold that, under Securities and Exchange Board of India (Sebi) regulations, would trigger a mandatory open offer for an additional 25 per cent stake. According to Sebi regulations, an open offer is triggered when an acquirer's shareholding in a target company exceeds 25 per cent of the target company's total shares or voting rights. Shares of YES Bank were trading up 2 per cent at ₹20.30 apiece on the BSE after the reports of the SMFG deal surfaced.
Time of India
5 days ago
- Business
- Time of India
Yes Bank shares rally 3% driven by reports of $1.1 billion additional investment from SMFG
Yes Bank shares gained 3.3% on Tuesday to reach the day's high of Rs 20.65 on the BSE, following reports of a potential major investment from Sumitomo Mitsui Financial Group Inc. ( SMFG ). The increase in the stock price comes as SMFG is reportedly looking to inject an additional $1.1 billion into the Indian lender, a move that could strengthen Yes Bank's position in the market. The deal involves SMFG acquiring approximately 5% of Yes Bank's shares from Carlyle Group Inc. and other minority stakeholders. Additionally, the Japanese financial group is considering purchasing $680 million worth of convertible bonds from Yes Bank to further bolster the lender's growth prospects. This fresh round of investment would increase SMFG's total stake in Yes Bank to approximately 25%, building on its previous $1.6 billion acquisition of a 20% stake in May. According to the Bloomberg report, discussions are still ongoing, and no final decisions have been made as of yet. These developments follow a series of investments by SMFG and other Japanese financial entities in Indian companies, including a $700 million acquisition last year in Fullerton India Credit Co., which further highlights Japan's growing interest in India's financial sector. Yes Bank share price history Over the past 1 year, the price has declined by 23.39%. Year-to-date (YTD), it has gained 2.95%. In the last 6 months, the price rose by 12.40%, while the 3-month gain stood at 15.35%. Over the past 1 month, the change was a modest 0.25%. Also read: Tejas Networks shares slump 10% to 52-week low as co swings to Rs 194 cr loss in Q1 from year-ago profit Yes Bank share price target According to Trendlyne, 12 analysts cover Yes Bank, with a 1-year target price of Rs 17 for the stock. Among these analysts, 8 have a "strong sell" recommendation, 2 suggest a "sell," and 2 advise a "hold."
Business Times
5 days ago
- Business
- Business Times
SMFG said to eye US$1.1 billion additional investment in Yes Bank: sources
[MUMBAI] Sumitomo Mitsui Financial Group (SMFG) is considering making an additional US$1.1 billion investment in Indian lender Yes Bank, people familiar with the matter said, following a previous investment made by Japan's second-biggest bank two months ago. SMFG is seeking to acquire about 5 per cent of Yes Bank shares from US investment fund Carlyle Group and other minority shareholders, the people said, asking not to be identified because the deliberations are private. SMFG may also buy about US$680 million in convertible bonds issued by Yes Bank to help boost growth, the people said. The fresh investment would bring the total amount to US$2.7 billion, giving SMFG a roughly 25 per cent stake in Yes Bank, the people said. Considerations are ongoing and no final decisions have been made, they said. A spokesman for Sumitomo Mitsui Banking, the banking unit of SMFG, declined to comment. A representative for Carlyle declined to comment, while Yes Bank did not immediately respond to a request seeking comment. Yes Bank shares have gained about 2.1 per cent this year, giving the bank a market value of about US$7.3 billion. SMFG in May agreed to acquire a 20 per cent stake in Yes Bank for about US$1.6 billion. For Japan's second-biggest lender, Yes Bank represents an opportunity to own a sizeable stake in a large Indian firm. Yes Bank has made a steady turnaround following a rescue by the central bank in 2020 when it was inundated with bad loans, and SBI had to inject new capital with other parties. Sumitomo Mitsui and its Japanese peers have been sealing deals in India. It spent US$700 million in March last year to take full control of the local company formerly known as Fullerton India Credit after first buying a US$2 billion stake in 2021. The unit specialises in housing and car loans. BLOOMBERG
