Kotak Mahindra Bank, through its subsidiaries, has entered into an agreement to purchase the 25% stake held by Goldman Sachs (Mauritius) LLC in two subsidiaries - Kotak Mahindra Capital Company (KMCC) and Kotak Securities (KS) for an aggregate consideration of Rs 333 crore.According to a release issued by Kotak Bank to the BSE today, the consideration for the 25% stake in Kotak Securities is Rs 123 crore, and the consideration for the 25% stake in KMCC is Rs 210 crore. "The strategic alliance between Kotak Bank and Goldman Sachs has been terminated," the release added. With these purchases, the Kotak Mahindra group will wholly own both KMCC and KS, the release said.Kotak and Goldman Sachs have entered into a business co-operation agreement for a period of up to one year. The transaction will be completed after the receipt of necessary regulatory-approvals.Describing the transaction as the change of an era, Uday Kotak, executive vice chairman & managing director of Kotak Bank, said: "With the purchase of the investment banking and securities businesses, the group has taken a significant step towards further integrating financial product offerings for customers. The time has come for us to raise our aspirations and scale as the India story becomes center stage in the global order. We at Kotak have always aspired to create an Indian financial institution with global class and capabilities. This is a reinforcement of that vision."We started our relationship with Goldman Sachs in 1992, and it became an equity joint venture in 1996. Over the last 14 years of our association, we, as an institution, have learnt a lot from Goldman Sachs and we value our relationship with them. Time has now come to chart our own destiny."
