Fairfax may sell IIFL Finance stake to fund IDBI Bank bid
In short
Canada’s Fairfax Financial Holdings plans to sell its nearly 11% stake in IIFL Finance soon. The stake is worth about 30 billion rupees, or $320 million.
The sale is meant to help Fairfax raise money for a bigger stake in IDBI Bank. Fairfax is also trying to increase its holding in IIFL Capital through an open offer.
What the reporting says
Canada’s Fairfax Financial Holdings plans to divest its nearly 11% stake in IIFL Finance soon. The move is aimed at raising funds to acquire a significant stake in IDBI Bank from the Indian government. Fairfax’s holding is valued at about 30 billion rupees, or $320 million, and it is also trying to improve its stake in IIFL Capital through an open offer.
Why it matters
Fairfax Financial Holdings is reported to be preparing an exit from its nearly 11% holding in IIFL Finance. The stake is valued at about 30 billion rupees, or $320 million. The reported reason is to free up cash for a bid to buy a significant stake in IDBI Bank from the Indian government. The company is also seeking a larger stake in IIFL Capital through an open offer.