MUMBAI: The stage is all set for LIC and IDBI to consummate the takeover deal. On Thursday, IDBI said that incoming promoter LIC would kick off the mandatory open offer to buy a 26 per cent stake in the state-run lender on December 3 and it would close on December 14.
The bank said in a disclosure with bourses that LIC had offered to acquire a 26 per cent stake in the fully paid-up equity capital, or over 200 crore equity shares, at Rs 61.73 per share. Assuming full acceptance under the offer for 26 per cent stake, LIC will have to fork out approximately Rs 12,600 crore. It will pay the shareholders participating in the open offer on December 31.
In all, LIC is set to purchase up to 51 per cent controlling stake in IDBI, and as per the Sebi takeover norms, the acquiring company has to make an open offer, giving an exit route to existing shareholders.
It may be recalled that IDBI’s board last week approved the issuance of preferential shares in favour of LIC, allowing the state-run insurer to pick up a controlling stake in the bank.
The government holds an 85.96 per cent stake in IDBI, which will fall below 43 per cent. The bank posted a net loss of Rs 2,409.89 crore for the quarter ended June, 2018. It had gross non-performing assets of about Rs 57,807 crore.