New Delhi, Oct. 15 -- The Union Cabinet on Wednesday approved the strategic sale of a 60.72% stake in IDBI Bank Ltd , along with the transfer of management control to Canadian financial services company Fairfax Financial Holdings Ltd for Rs.52,878.08 crore, in the largest strategic disinvestment deal ever, and also the largest investment by a foreign financial services company in the country.

Of the 60.72%, 30.48% will come from the government's holding and 30.24% from that of state-owned Life Insurance Corporation of India (LIC). Post-sale the government's stake in the company will reduce to 15%, LIC's to 19% . Minority retail shareholders own around 4% of the bank.

Fairfax is founded by Prem Watsa, a Canadian businessman of Indian ori...