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Mizuho Nears Avendus Capital Buyout at ₹5,900 Cr
15 Dec
Summary
- Mizuho Financial Group finalizing Avendus Capital acquisition at ₹5,900 crore.
- KKR will exit its 58% stake, realizing a 3.5x return over nine years.
- Mizuho will own 65-70% of Avendus, retaining founders' operational control.
Mizuho Financial Group is on the verge of acquiring Indian investment bank Avendus Capital for a valuation of ₹5,900 crore. The deal, which has undergone protracted negotiations, is expected to be formally approved this week. This acquisition signifies a major strategic investment by Mizuho, Japan's third-largest bank, into the rapidly growing Indian financial market, underlining increasing Japanese interest in the region.
The transaction will lead to KKR divesting its entire 58% shareholding, which it acquired in 2015. Other stakeholders, including early investors and some employees, will also exit. Upon completion, Mizuho will hold a 65-70% stake, though the co-founders will retain operational control, with Mizuho gaining veto rights and board seats.
Avendus, a prominent Indian deal-making firm, operates across financial advisory, capital markets, and wholesale financing, with its investment banking division being its primary revenue generator. This acquisition is poised to enhance Mizuho's presence in India, following similar strategic investments by other Japanese financial groups in the country.
