Financial services firm IIFL Holdings’ independent directors committee has recommended in favour of selling 26 per cent stake in the company to a subsidiary of Canadian billionaire Prem Watsa founded Fairfax India Holdings.
FIH Mauritius Investments (FIH), arm of Fairfax India, has made an open offer in July to acquire 26 per cent stake in IIFL Holdings for about Rs 1,621 crore at Rs 195 per share. “...the IDC (Committee of Independent Directors) is of the opinion that the open offer price to the public shareholders of the Target Company (IIFL Holdings) is in compliance with requirement of the Takeover Regulations and to that extent is fair and reasonable,” IIFL Holdings said in a regulatory filing on Sunday. The panel has, however, underlined that latest share value of IIFL Holdings was 5.95 per cent higher than the offer of 195 per share and which shareholders can consider while evaluating the deal, the filing said.
The offer was made on July 13 at a premium of 3.56 per cent on closing price of IIFL share. Fairfax Financial Holdings Limited, parent of Fairfax India, currently owns approximately 8.97 per cent of IIFL and has an economic interest in another approximately 5.24 per cent of IIFL through derivative
instruments --all acquired prior to the establishment of Fairfax India.
Fairfax India was established by Fairfax to invest in businesses in India with a view to long-term capital appreciation.