Mizuho buys majority stake in Avendus for $523 million

Japanese bank to pick up 61.6-78.3% of Avendus shares, making it a consolidated subsidiary

- Swastika Das Sharma & Priyamvada C.

Barely a week after global private equity firm KKR sewed up a deal with Ranu Vohra, co-founder of India's Avendus Capital, Japanese Mizuho Securities Co. on Wednesday announced that it is buying a majority stake in the Mumbai-based investment bank for up to 81 billion yen, or $523 million.

Redpoint Investments Pte Ltd., an affiliate of US-based KKR is selling the stake to Mizuho Securities, a subsidiary of Japan's third-largest banking group Mizuho Financial Group. Vohra, serving as executive vice chairman of Avendus, will also be liquidating his stake as part of the deal.

Mizuho Securities said in a statement that the 81 billion yen deal will represent 61.6% to 78.3% of Avendus Capital shares, with which it plans to make the financial services firm a consolidated subsidiary.