2 December 2016
Sipadan Investments (Mauritius) Ltd an arm of the $33.67 billion Malaysian sovereign wealth fund Khazanah Nasional Berhad is selling almost all of its stake in IDFC Bank in a block deal which will be executed on Wednesday, two people familiar with the deal said.
“They will sell about 80.4 million shares at up to a 4 per cent discount to the closing price on Tuesday. The deal is likely to be closed early on Wednesday. UBS is the sole banker to the deal,” said a banker who has seen the term sheet.
Sipadan own 90.63 million shares or 2.67 per cent shares in IDFC Bank. It has received these shares after the demerger of the bank from IDFC Ltd. The Malaysian sovereign wealth arm has bought 8.97 per cent stake in IDFC in March 2007 through a similar block deal incidentally also brokered by UBS on behalf of Swiss Finance Corporation.
IDFC Bank shares ended at Rs 71.05 up 1.43 per cent on the Bombay Stock Exchange (BSE) on Tuesday.
“The term sheet indicates that they will offer a maximum discount of 4 per cent to Tuesday’s closing price which means that they could sell at a minimum of Rs 68 per share valuing the deal at around Rs 546 crore,” this person said.
Earlier on Tuesday Reuters reported that the sale will be priced in a range of 68.25 rupees to 71.10 rupees apiece.
An IDFC Bank spokesperson said it had no comment to offer. Khazanah could not be immediately reached.
Credit: Economic Times, The Hindu