Fairfax To Sell IIFL Finance Stake To Fund IDBI Bank Purchase, Say Report
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Fairfax Financial Holdings plans to sell its nearly 11% stake in IIFL Finance to raise funds for buying a controlling share in IDBI Bank.
- ✓The firm wants to complete this sale soon.
- ✓This move follows IIFL Finance’s recent plan to get investment from Blackstone to expand its own capital base.
Story at a Glance
- Category
- Indian Markets
- Reported By
- NDTV Profit
- Reading Speed
- 1 Minute(s)
- Market Focus
- India Economy
Canada's Fairfax Financial Holdings is planning to exit its nearly 11% stake in IIFL Finance as it looks to raise funds for its proposed acquisition of a controlling stake in IDBI Bank.
Reuters citing two people familiar with the discussions reported that Fairfax is looking to complete the sale soon. The proposed stake sale is aimed at unlocking capital for Fairfax's purchase of a 60% stake in IDBI Bank from the Indian government and Life Insurance Corporation of India (LIC), the country's largest insurer, according to the report.
Fairfax first invested in IIFL Finance in 2015, acquiring a stake of nearly 22% in the company. Its holding has since been diluted to around 11%.
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