Fairfax bids $5.5 billion for majority of IDBI Bank
Fairfax Financial Holdings has offered to buy more than 60 % of IDBI Bank for $5.5 billion, valuing its shares at 81 rupees each, above the average fair value of 75.99 rupees. IDBI shares opened at about 79 rupees on the day of the announcement. Employee unions have called for a two-day nationwide strike against the sale, and opposition leader Rahul Gandhi has backed them. Finance Minister Nirmala Sitharaman said the bank was revived through professionalism, prudence and a recapitalisation of more than 250 billion rupees ($2.6 billion).
Key facts
- The United Forum of IDBI Officers and Employees is the body calling the two-day strike.
- Sitharaman credited the revival to professionalism and prudence as well as the recapitalisation.
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Why it matters
The deal would hand control of a major Indian state-linked lender to a foreign investor, drawing union and political opposition.
What changed
First published from CNBC