Canada’s Fairfax India Holdings Corporation is planning to acquire another 26% stake in Mumbai-based financial services firm IIFL Holdings.
The investment firm today announced an open offer to acquire 83.13 million shares in IIFL at Rs 195 per share for a total of Rs 1,621 crore.
Shares of IIFL jumped more than 10% to Rs 208 on the BSE on Tuesday following the announcement.
“Fairfax India announces that its wholly-owned subsidiary, FIH Mauritius Investments ("FIH"), has issued a public announcement of an open offer to acquire up to approximately 83,128,852 equity shares of IIFL Holdings Limited (IIFL), formerly India Infoline Limited, at a price of Rs 195 per share (approximately $3.07 per share at current exchange rates) other than those shares already owned by it and its affiliates according to regulations of the Securities and Exchange Board of India for substantial acquisitions of shares and takeovers (the "Offer"),” Fairfax said in a release.
The offer is expected to close later this year subject to receipt of regulatory approvals in India, it added.
Fairfax currently holds nearly 9% stake in IIFL and has an economic interest in another approximately 5.24% of IIFL through derivative instruments.
"IIFL, under the independent leadership of its executive chairman, Nirmal Jain, has an impressive management team with a strong, long-term history of profitable growth, which fits within our strategy for investing in well-managed companies with high integrity and long-term track records in India," said Prem Watsa, Fairfax India's chairman.
Watsa, known as "Canada’s Warren Buffett" in investment circles, established Fairfax India recently to invest in India companies with a goal of making long term returns.
IIFL is a strong domestic player in the non-banking finance (NBFC), housing finance, wealth management, retail broking, institutional equities, investment banking and insurance distribution space.
The open offer will be managed by ICICI Securities.
No comments:
Post a Comment