Fairfax to acquire IDBI Bank stake in $5.5 billion deal, biggest foreign investment in Indian bank
Fairfax Holdings is set to acquire a significant stake in India's IDBI Bank in a deal valued at $5.5 billion. This transaction represents the largest foreign investment in an Indian bank to date.
Why it matters
This deal signals a major shift in India's banking privatization efforts and highlights growing foreign investor interest in the Indian financial sector.
Mumbai: The government has finalised Fairfax Holdings for the sale of its stake in IDBI Bank after the Canadian firm sweetened its offer, people aware of the development said.The decision was made Tuesday after meetings at the finance ministry.“Fairfax is now offering ₹81 per share, which is higher than their offer of ₹75 given last year,” one of the people said.132400442At this price, the government could raise around ₹26,620 crore by selling a 30.48% stake out of the 45.48% it holds in the bank.State-run Life Insurance Corporation that owns just under 50% in the bank is also planning to sell 30.24%, which will take the total deal size to ₹53,000 crore ($5.5 billion) and make it the biggest foreign investment in an Indian bank.Prem Watsa-owned Fairfax Holdings will have to also make an open offer to the public shareholders.Also Read: FM Sitharaman to meet PSB chiefs to review foreign currency…
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