Canada’s Fairfax Financial Holdings may face delays in acquiring IDBI Bank after valuation talks remained unresolved. The government and LIC plan to sell 60.72% of IDBI Bank through the strategic stake sale. A Finance Ministry meeting on September 7 reviewed Fairfax’s reported Rs. 81 per share offer for the stake.
The offer values the controlling stake at nearly Rs. 53,000 crore, while officials assess government valuation expectations. The valuation question gained attention after IDBI Bank shares dropped 10.56% on September 8.
The stock closed at Rs. 81.12 after investors reacted sharply to the reported Fairfax offer. The reported bid also sits below the bank’s previous closing price of Rs. 90.70. The government and LIC would sell 30.48% and 30.24% stakes, respectively, under the proposed transaction.
Business Today reported that officials are working on the timing of the final announcement. Fairfax remains the frontrunner after the government reopened bidding following earlier offers below its reserve price.
The transaction started in 2021 and has faced several regulatory and procedural hurdles since then. A final agreement still requires clarity on valuation before the government can complete the strategic sale.
Fairfax also faces portfolio challenges while preparing for a potential IDBI Bank acquisition. The Canadian investor holds about 40% in CSB Bank and owns a stake in IIFL Finance.
Recent reports suggested changes to Fairfax’s Indian holdings could support the proposed banking transaction. IIFL Finance later denied reports about negotiations involving Fairfax’s potential exit from the company.
The valuation decision could determine the next major step for the IDBI Bank Fairfax deal. Investors are likely to track the final offer, government decision, and regulatory approvals closely.
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