Fairfax IDBI Bank Deal: Canadian Investor Picked for 60.72% Stake in India’s IDBI Bank
The Fairfax IDBI Bank deal moved forward on October 14, when India’s government declared a wholly owned subsidiary of Toronto-based Fairfax Financial Holdings the strategic buyer for a 60.72% stake in IDBI Bank. The price is 81 rupees per share, or about 528.78 billion rupees (roughly US$5.6 billion), according to Fairfax’s announcement. It marks a major step in India’s long-running plan to privatise the lender. It is also a large cross-border bank investment by a Canadian company, though the sale is not final yet.
What the Fairfax IDBI Bank Deal Includes
The stake being sold comes from two sellers. The Government of India is selling 30.48%, and Life Insurance Corporation of India (LIC) is selling 30.24%. After the sale, the government and LIC are expected to keep a combined 34% in t...