Fairfax likely to exit IIFL Finance to fund its acquisition of IDBI Bank

Fairfax is ‌looking to complete the exit "soon", one of the people said | Image: Wikimedia Commons

Canada's Fairfax Financial Holdings plans ​to exit its nearly 11% ​stake in India's IIFL Finance, ‌two people familiar with the discussions said on Wednesday.

The sale is intended to unlock funds for Fairfax's purchase of a 60% stake in IDBI Bank from India's federal government and the Asian country's largest insurer.

Fairfax is ‌looking to complete the exit "soon", one of the people said.

Both people declined to be identified as the discussions are confidential.

Fairfax and IIFL did not immediately respond to ​emails seeking comment.

Fairfax bought a near 22% stake in ‌IIFL Finance in 2015, but the stake has ​since been ‌diluted down to near 11%. On Tuesday, ‌IIFL Finance said that it would expand its capital base, ‌with US ​investment fund ​Blackstone purchasing 16% of equity via convertible shares and warrants.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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