India’s government is close to finalizing a deal with Fairfax Financial Holdings Ltd. for the sale of IDBI Bank Ltd., possibly at a slightly higher price, according to sources familiar with the matter.
Fairfax, whose earlier bid was below the government’s expected reserve price, is likely to increase its per-share offer by a few rupees. However, exact details remain undisclosed as the discussions are still private.
The deal requires final approvals from the Indian Cabinet and the Reserve Bank of India (RBI) before it can move forward.
Fairfax has already infused capital into India, signaling strong intent to acquire the stake. The government, led by Prime Minister Narendra Modi, has been trying to privatize the Mumbai-based bank for several years without success.
If completed, this would become one of the largest government-backed 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.
business-standard.