PREM WATSA
Fairfax's Rs 52,878-crore IDBI Bank deal sets stage for a financial services powerhouse
Fairfax Financial Holdings has successfully acquired a controlling stake in IDBI Bank for Rs 52,878 crore. The investment aims to redefine IDBI Bank as a comprehensive financial services provider in India and abroad. Fairfax plans to integrate its existing insurance and capital market businesses into IDBI Bank to enhance its offerings. The acquisition reflects Fairfax's strategy of leveraging IDBI Bank's infrastructure for greater market competitiveness.
Blackstone set to acquire 15% of IIFL for Rs 5,000 crore
Blackstone will invest around Rs 5,000 crore for a 15% stake in IIFL Finance, while promoters Nirmal Jain and R Venkataraman will invest Rs 1,200 crore to retain their combined holding at around 25%. Mumbai-based investor Rohit Kothari, through Anchorage Capital, will contribute about Rs 100 crore, taking the total capital infusion to over Rs 6,200 crore.
IIFL Finance board to weigh Blackstone, Advent proposals for Rs 5,000 crore capital raise
IIFL Finance's board will consider separate investment proposals from Blackstone and Advent International for a nearly Rs 5,000 crore capital raise, as the lender also explores a potential transaction involving Fairfax's stake sale.
IDBI Bank Strike: What's on November 10? Nationwide bank strike, wider protests on the table; here's what you need to know
IDBI Bank Strike: A two-day nationwide strike by IDBI Bank employees and officers against the proposed sale of a majority stake to Canada's Fairfax Financial Holdings ended on Tuesday. The union will decide its next course of action at a meeting on November 10 and may seek support from other bank unions for a nationwide protest. Meanwhile, the Congress has also raised concerns over the proposed Rs 53,000 crore deal.
IDBI Bank employees' forum opposes majority stake sale to Fairfax, seeks parliamentary review
United Forum of IDBI Officers and Employees has expressed opposition to the proposed sale of IDBI Bank. Concerns include potential undervaluation of the bank's assets and the need for public scrutiny. The government plans to transfer a significant stake in IDBI Bank to Fairfax Financial Holdings. This transaction, valued at approximately Rs 53,000 crore, has raised fundamental questions about social responsibilities.
Government plans to pare stakes in 4 PSU banks to 75%
The Union government announced in the 2021-22 budget that, besides IDBI Bank, it would take up two public sector banks and one general insurance company for privatisation.
IDBI Bank sale to Fairfax enters final lap, RBI nod now key: DIPAM
The strategic sale of IDBI Bank to Canada’s Fairfax Financial Holdings is expected to be completed by the end of FY27, subject to RBI approval, DIPAM Secretary Arunish Chawla said. Fairfax will acquire a 60.72% stake from the government and LIC for about Rs 53,000 crore, in what the government described as a major step in the bank’s long-delayed privatisation.
Fairfax's IDBI buy: Biggest-ever banking M&A deal in India had no investment bankers
Fairfax Financial Holdings’ $5.6 billion acquisition of a controlling stake in IDBI Bank is significant not just for being the biggest foreign investment in India’s banking sector, but also because the transaction was handled without the involvement of major investment banks. Fairfax and IDBI Bank did not launch a formal process to appoint financial advisers, while KPMG advised the government on the sale and two professional agencies helped determine the government’s fair valuation.
Looking to ride India boom over next decade with IDBI Bank, says Fairfax chief Prem Watsa
Prem Watsa, chairman of Fairfax Financial, has acquired a major stake in IDBI Bank, emphasizing India's economic growth potential. He believes that India will experience significant economic advancements over the next decade. Watsa expressed confidence in the bank's financial recovery and potential for expansion after overcoming past challenges. He assured that the focus will be on maintaining the lender's fiscal integrity and staff welfare.
Canada's Warren Buffett bets his billions on India. What does he see?
Prem Watsa’s Fairfax Financial will acquire a 60.72% stake in IDBI Bank for Rs 52,878 crore, marking India’s largest cross-border banking deal. The Canadian investor plans to build a financial services powerhouse by combining banking with insurance, wealth management and capital markets. But regulatory approvals, overlapping ownership with CSB Bank and execution risks could test his biggest India bet.
Fairfax gets 15 years to reduce stake in IDBI Bank to 26%
Fairfax Financial Holdings will acquire a 60.72% stake in IDBI Bank and reduce its ownership over 15 years. The Reserve Bank of India has allowed Fairfax to decrease its stake to 26% eventually. Fairfax has two years to decide the future of CSB Bank, including merger or sale options. The group aims to transform IDBI Bank into a comprehensive financial services entity.
Supreme Court rules against Yes Bank's write-off of Rs 8,415 crore AT1 bonds
The Supreme Court confirmed the decision of the Bombay High Court regarding Yes Bank's AT1 bonds. This ruling impacts ₹8,415 crore in bonds written off during the bank's 2020 restructuring. The court noted that the administrator lacked the authority to write down these bonds. Bondholders had contested the write-off, citing mis-selling of the securities. Yes Bank is now obligated to repay the bonds along with accrued interest.
India's BoP set to turn positive but below expectations amid oil import costs and widening trade deficit: ICICI Bank
India's Balance of Payments (BoP) is turning positive, but it is likely to remain lower than earlier expectations as elevated oil prices and an expanding non-oil, non-gold deficit weigh on the external trade position, according to a research report by ICICI Bank Global Markets.
India is now biggest country exposure for Fairfax, we have zero bets on AI: Prem Watsa
Canadian billionaire Prem Watsa's bet on IDBI Bank is backed by faith in the Indian economy, he told Mohit Bhalla and Sruthijith KK in a phone interview. The government Wednesday approved the divestment of a majority stake in IDBI Bank to Watsa's Fairfax Financial Holdings. Watsa, 76, who was born near Hyderabad and studied at IIT-Madras, migrated to Canada in the 1970s. Started by him as an insurance company, Fairfax Financial now has assets of over $100 billion. Edited excerpts from the interview are in the copy.
Fairfax must merge CSB or exit one bank within 2 years: DIPAM Secy Arunish Chawla
The Cabinet Committee on Economic Affairs has approved Fairfax Financial Holdings' acquisition of a majority stake in IDBI Bank. The next steps include obtaining necessary regulatory clearance from the Reserve Bank of India. Employee service conditions and pensions will be protected under the new ownership. Future strategic restructuring plans for public enterprises are also in progress. Additional asset monetisation initiatives involving infrastructure are being developed for efficient capital use.
Fairfax plans to bring Digit, IIFL Capital under IDBI Bank
Fairfax Financial Holdings plans to bring its interests in Go Digit and IIFL Capital Services under IDBI Bank, creating a financial-services group spanning banking, insurance, investment banking and wealth management. The proposed restructuring follows Fairfax's selection as strategic buyer for a 60.72% stake in the Indian lender for about Rs 52,878 crore.
A $6 bn deal signals major appetite for the India prize as global giants look to deepen exposure
The sale of a controlling stake in IDBI Bank for around $6 billion is being viewed a pivotal moment in India's banking reform journey. The transaction received attention from a variety of global investors, highlighting their confidence in the nation's financial ecosystem. Experts predict this move may open doors to increased deal-making opportunities in the future.
Fairfax offers plan to resolve IDBI-CSB ownership overlapping
A merger of the two lenders is emerging as the most likely option, potentially allowing the Canadian investor to consolidate its banking interests under a single licence, sources said.
IDBI, poster boy for more privatisation
IDBI Bank has been sold to Fairfax, resulting in a significant shift from government control to private ownership. This sale follows a long period of bank recovery from bad loans and recapitalisation efforts. The new management faces challenges in driving IDBI Bank's growth in a competitive private banking environment. Foreign interest in India's banking sector continues to rise, influencing the strategic sale approach.
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