Fair trade regulator CCI has cleared Canadian investment holding company Fairfax's proposed acquisition of 26 per cent stake in IIFL Holdings.
Under the deal, announced in July, Fairfax would purchase an additional 26 per cent shareholding in IIFL through an open offer.
In a tweet today, Competition Commission of India (CCI) said it has approved "acquisition of up to 26 per cent of equity shares of IIFL Holdings Ltd by Fairfax".
Fairfax India's wholly-owned subsidiary -- FIH Mauritius Investments -- is to buy 8.32 crore shares in IIFL Holdings from the open market at a price of Rs 195 apiece. In all, Fairfax is likely to spend Rs 1,621 crore for a 26 per cent stake in IIFL Holdings, as per an announcement made in July.
Fairfax Financial Holdings already has nearly 9 per cent in IIFL. Besides, it 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)", according to the announcement.
Fairfax Financial Holdings set up Fairfax India and raised about USD 1 billion early this year through an initial public offer (IPO) and private placements.
IIFL is into non-banking finance, housing finance, wealth management, broking, investment banking and insurance distribution.
