India, Oct. 14 -- The Cabinet Committee on Economic Affairs (CCEA) has approved 10955230 Canada Inc., the parent entity of Fairfax Financial Holdings Ltd., as the strategic buyer for a 60.72% stake in IDBI Bank Ltd for a consideration of Rs 52,878.08 crore.
The proposed transaction involves the sale of a 30.48% stake held by the Government of India and a 30.24% stake held by Life Insurance Corporation of India (LIC). Following the transaction, the government will retain a 15% shareholding in the bank, while LIC will continue to hold 19%.
Background and Bidding Process
IDBI Bank had faced financial difficulties in the past, requiring capital support from the government and subsequently from LIC. In May 2017, the Reserve Bank of India (RBI...