India’s government is nearing an agreement with Fairfax Financial Holdings Ltd. for the sale of IDBI Bank Ltd., possibly at a slightly improved price, according to sources familiar with the matter.
Fairfax, whose earlier bid was below the government’s expected reserve price, is now likely to increase its per-share offer by a few rupees. However, exact details have not been disclosed as discussions remain confidential.
The deal is still subject to final approvals from the Indian Cabinet and the Reserve Bank of India (RBI).
Recently, Fairfax brought fresh capital into India, signaling strong intent to move forward with the acquisition. The government, led by Prime Minister Narendra Modi, has been attempting to sell its stake in the Mumbai-based lender for several years without success.
If completed, this transaction would become one of the largest government-led bank privatization deals in recent years.
Fairfax, founded by Indian-origin Canadian billionaire Prem Watsa, remains the leading bidder, while Emirates NBD PJSC had also shown interest earlier.
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