Fairfax Acquires Stake in IIFL

2019 ias preliminary exam test series

Canadian firm Fairfax India Holdings (FIH) has acquired an additional 21.85 per cent stake in financial firm IIFL Holdings for Rs 1,341.37 crore through an open offer.

IIFL operates businesses in non-banking finance, housing finance, wealth management, retail broking, institutional equities, investment banking and insurance distribution.

The offer closed last month and FIH Mauritius Ltd, having 8.8 per cent stake in IIFL prior to the open offer, acquired 6.87 crore shares at Rs 195 each.

Following the completion of the open offer, FIH Mauritius Ltd’s holding in IIFL has increased by 21.85 per cent to 30.72 per cent.

Besides, Fairfax has an economic interest of approximately 5.24 per cent in IIFL through derivative instruments. Fairfax India Holdings Corp, through its subsidiary FIH Mauritius Investments in July, had announced an open offer to buy 26 per cent stake in IIFL.

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