Press Release Details
Offer to Acquire 26% of IIFL Holdings Limited
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
( Note : All dollar amounts in this news release are expressed in U.S. dollars, except as otherwise noted.)
Fairfax India Holdings Corporation (TSX:FIH.U) (“Fairfax India”) announces that its wholly-owned subsidiary, FIH Mauritius Investments Ltd (“FIH”), has issued a public announcement of an open offer to acquire up to approximately 83,128,852 equity shares of IIFL Holdings Limited (“IIFL”), formerly India Infoline Limited, at a price of INR 195 per share (approximately US$ 3.07 per share at current exchange rates) other than those shares already owned by it and its affiliates according to regulations of the Securities and Exchange Board of India for substantial acquisitions of shares and takeovers (the “Offer”). Assuming full acceptances in the Offer, FIH will, together with certain of its affiliates, acquire 26% of the outstanding shares of IIFL for an aggregate consideration of INR 16.21 Billion (approximately US$ 255 million at current exchange rates) by way of the Offer. The Offer is expected to close later this year subject to receipt of regulatory approvals in India.
Fairfax Financial Holdings Limited (“Fairfax”), Fairfax India’s parent, currently owns approximately 8.97% of IIFL and has an economic interest in another approximately 5.24% of IIFL through derivative instruments (all acquired prior to the establishment of Fairfax India). Fairfax India was established by Fairfax to invest in businesses in India with a view to long-term capital appreciation. Fairfax India is familiar with IIFL through Fairfax’s long-standing prior ownership interest in IIFL and is executing on its strategy by making this Offer.
IIFL is a diversified financial services holding company in India which generated approximately INR 22.2 Billion in revenue and INR 4.8 Billion in earnings for its fiscal year ended March 31, 2015. IIFL operates businesses in non-banking finance, housing finance, wealth management, retail broking, institutional equities, investment banking and insurance distribution.
“IIFL, under the independent leadership of its Executive Chairman, Nirmal Jain, has an impressive management team with a strong, long-term history of profitable growth, which fits within our strategy for investing in well-managed companies with high integrity and long-term track records in India,” said Prem Watsa, Fairfax India’s Chairman.
About Fairfax India
Fairfax India is an investment holding company whose objective is to achieve long-term capital appreciation, while preserving capital, by investing in public and private equity securities and debt instruments in India and Indian businesses or other businesses with customers, suppliers or business primarily conducted in, or dependent on, India.
Fairfax India Holdings Corporation
Chief Financial Officer