Fairfax Proposes Transfer of Go Digit Holdings to IDBI Bank
Fairfax Financial Holdings has proposed transferring its interests in insurtech company Go Digit to IDBI Bank as part of its planned acquisition of the lender.
Canadian investor Fairfax Financial Holdings has proposed transferring all its interests in insurtech company Go Digit General Insurance and its affiliate Go Digit Life Insurance to IDBI Bank. Fairfax India Holdings has also proposed transferring its entire stake in IIFL Capital Services to the lender.
These proposals come after the Indian government selected a Fairfax subsidiary as the "strategic buyer" for a 60.72% stake in IDBI Bank. Fairfax intends to acquire the controlling stake for approximately $5.6 billion.
The transfers are proposed to occur at respective market prices and are subject to regulatory approvals from authorities including the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI). The Go Digit transfer also requires clearance from the Insurance Regulatory and Development Authority of India (IRDAI).
Go Digit CEO Kamesh Goyal stated that combining Digit with IDBI Bank would significantly strengthen Digit's distribution footprint. Fairfax Chairman and CEO Prem Watsa indicated that the arrangement would allow IDBI Bank to distribute insurance products through Digit and offer investment banking services via IIFL Capital.