Government declines ROFR, Fairfax set to buy 60.72% IDBI stake
Business
The Indian government has decided not to give Fairfax a right of first refusal (ROFR) on any future sale of its remaining shares in IDBI Bank.
This comes as Canada Inc (parent entity Fairfax Financial Holdings Ltd) is set to buy a 60.72% stake in the bank for over ₹52,878 crore.
Government retains 15% LIC holds 19%
After the deal, the government will keep 15% and LIC will hold 19%, but LIC needs to dilute 4% of residual within two years.
By skipping ROFR, the government is following a Supreme Court push for open market sales, basically making sure they get top value when selling their leftover shares later.
For anyone watching big money moves or interested in how public assets get sold, this is a pretty significant shift.