The central government and LIC are moving ahead with the process of selling their 60.7% stake in IDBI Bank. The revised bids of Canada’s Fairfax and Dubai’s Emirates NBD are being evaluated. The deal is likely to be completed in a month.
New Delhi [भारत]July 14 (ANI): The Government of India and state-run insurer Life Insurance Corporation of India (LIC) are moving forward with the process of strategic sale of their combined 60.7 per cent stake in IDBI Bank. Revised financial bids from Canada’s Fairfax Financial Holdings and Dubai-based Emirates NBD are currently being evaluated. Government sources told ANI on Tuesday that the disinvestment process is likely to be completed within a month.
According to sources, the revised bids are being examined and a senior panel of bureaucrats reviewed the progress of the deal during a meeting held on Monday. The proposed deal is part of the Centre’s strategic disinvestment program and will see the Government of India and LIC selling their combined 60.7 per cent stake in IDBI Bank. Currently, the Government of India holds 45.48 percent stake in IDBI Bank, while LIC holds 49.24 percent.
These two big companies are in the race
Sources said the valuation process is progressing and the stake sale is expected to be completed within the next month upon completion of necessary processes. Canada’s Fairfax Financial Holdings, founded by Indian-origin Canadian billionaire Prem Vats, and Dubai-based Emirates NBD are contenders to acquire controlling stake in IDBI Bank.
The deal could be worth $5.7 billion
The proposed acquisition is valued at approximately US$5.7 billion at current market prices and, if completed, will be one of the largest foreign investments in India’s banking sector. At the time of writing the report, IDBI Bank shares were trading at Rs 87.69, up 4.31 per cent. (ANI)
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