Advent International and Temasek in talks to buy Fairfax stake in IIFL Finance
Private equity firms Advent International Corp and Singapore's Temasek Holdings are negotiating to acquire shares from Fairfax Financial Holdings in IIFL Finance, which aims to exit its position to fund an acquisition of IDBI Bank.
American private equity firm Advent International Corp and Singapore's Temasek Holdings are among investors currently in talks to buy out Fairfax Financial Holdings' stake in IIFL Finance. Blackstone Inc is also reported to be part of the group attempting this acquisition. Fairfax, established by Prem Watsa, currently holds a 13.7% stake in non-banking financial company IIFL Finance via subsidiary FIH Mauritius Investments. People close to the matter indicate Fairfax must sell these shares to comply with regulations required for its potential acquisition of a 60.7% stake in IDBI Bank. The proposed sale is intended to partly fund the IDBI Bank buyout deal. On Thursday, IIFL Finance shares rose 0.32% on the BSE, closing at ₹607.15 each, resulting in a market capitalization of ₹25,760 crore. At the current price point, Fairfax's holding would be valued at approximately ₹3,500 crore. Fairfax Financial Holdings and Advent International Corp did not respond to inquiries by press time. A Temasek Holdings spokesperson stated the firm declined to comment on market speculation. An IIFL Finance spokesperson confirmed the queries concerned Fairfax's shareholding but noted the company cannot disclose if discussions are happening or confirm any speculation regarding third-party talks.
