IIFL Finance on Wednesday clarified that it is not engaged in any negotiations with Fairfax Financial Holdings regarding the sale of its shares, dismissing a media report that suggested the Canadian investor was planning to exit the company.
Earlier, The Economic Times, citing sources, reported that Fairfax Financial Holdings was likely to sell its remaining stake of around 13.7% in IIFL Finance. The proceeds from the proposed stake sale were reportedly expected to help part-fund Fairfax's proposed acquisition of IDBI Bank.
According to the report, Fairfax has been in discussions with at least four private-equity investors for the sale of its stake in IIFL Finance. Bloomberg had earlier reported that Blackstone Inc. was among the investors considering the acquisition of a stake in the non-banking financial company.
In a regulatory filing dated September 9, IIFL Finance said it had no involvement in any such discussions.
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“There have been no such negotiation/event from the Company in connection with the above news article,” IIFL Finance said in the filing.
Meanwhile, CSB Bank has also denied the report, saying it was not aware of the developments mentioned in the news article.
“The Bank would like to categorically state that it is not aware of the background of the said news item or the factual correctness thereof the contents,” CSB Bank said in a separate regulatory filing.
The bank added that it had no information regarding the matters reported and was not involved in any negotiations, discussions, events or developments of the nature referred to in the report.
The Economic Times report had also stated that Fairfax had informed the government of its plan to merge CSB Bank with IDBI Bank if it succeeds in its bid to acquire the state-owned lender.
At 11:15 AM, IIFL Finance share price was trading 3.02% lower at Rs 607.50 apiece on the BSE.
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