India's Catholic Syrian Bank Ltd. is offering to sell a 51% stake to Canada's Fairfax Financial Holdings Ltd. at 160 rupees per share, excluding premium, The Economic Times reported June 12, citing "two people familiar with the development."
The proposed sale price would value the bank at close to 13 billion Indian rupees.
While the bank's board is seeking an additional premium of 10 to 15 rupees per share, such a premium would be determined by the two parties, the sources told the publication. The report came after India's central bank in May asked Catholic Syrian Bank to settle differences in pricing valuation with Fairfax Financial before courting other potential buyers.
Talk of Fairfax Financial's potential purchase of Catholic Syrian Bank started when the Canadian firm in late 2016 obtained approval from the Indian central bank for a possible deal. The Indian bank later appointed an external agency for evaluating the stake and the agency pegged the value at about 165 to 200 rupees per share, according to a Bloomberg News report.
Harsha Raghavan, CEO of Fairfax Financial's unit Fairbridge Capital, declined to comment, while Catholic Syrian Bank did not respond to emailed queries of The Economic Times.
As of June 9, US$1 was equivalent to 64.32 Indian rupees.