Fairfax plans IIFL Finance exit to fund IDBI Bank bid
Fairfax Financial Holdings plans to exit IIFL Finance to fund its IDBI Bank acquisition. The investor will use proceeds to part-fund the proposed takeover of the state-owned lender. Fairfax intends to merge CSB Bank with IDBI Bank after completing the acquisition. This move aims to simplify lending interests and avoid business overlaps. The deal is expected to be completed shortly after…
Mumbai: Fairfax Financial Holdings, led by Prem Watsa, may exit its stake in IIFL Finance to partially fund its acquisition of IDBI Bank, according to sources familiar with the plans. The Canadian investor has informed the government of its intentions to merge CSB Bank with IDBI Bank once it completes the takeover of the state-owned lender, described as the largest overseas M&A in Indian banking.
Fairfax holds approximately 13.7% of IIFL Finance, which could be worth around ₹3,800 crore ($400 million) at IIFL's current market capitalization of ₹27,700 crore. The company has been in discussions with at least four private-equity investors for the remaining stake. Fairfax is also exploring a merger with CSB Bank, which it owns 40%, after completing the IDBI Bank acquisition.
The deal for IDBI Bank is said to be nearly sealed, with Fairfax potentially paying ₹81 per share, resulting in a total deal worth around ₹53,000 crore ($5.5 billion).
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- Blackstone among firms in fray to buy Fairfax stake in IIFL Finance business-standard.com
- Fairfax to exit IIFL Finance before likely IDBI deal economictimes.indiatimes.com
