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Fairfax offers to buy 26% stake in India's Carlyle-backed IIFL

  • Holden Mann
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Canada-based Fairfax Financial Holdings has offered to buy a 26% stake in Carlyle-backed financial services company IIFL Holdings Limited for INR16 billion ($255 million).

Fairfax will make its purchase through its subsidiary Fairfax India, which raised $1 billion earlier this year in a combined IPO and private placement. ICICI Securities, which is serving as the manager for the offer, said in a regulatory filing that Fairfax will buy 83 million shares in IIFL for INR195 each.

As Fairfax already holds a 9% stake in IIFL directly, the acquisition through Fairfax India will raise its total holding to 35% if fully accepted and make it the largest single shareholder in the company. Fairfax already has a seat on IIFL's board.

India Infoline Group, the parent company of IIFL Holdings, is a retail and institutional brokerage that also supports other businesses. Carlyle owns a 9% stake in IIFL, which it bought for about $37.5 million in 2011. IIFL itself has held a majority stake in PE firm India Alternatives Investment Advisors since last year, and is also an investor in the firm's India Alternatives Private Equity Fund.

The offer is expected to close later this year, subject to regulatory approval.

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