New Delhi: Insurance behemoth LIC has sought the Competition Commission’s nod for its acquisition of majority stake in state-owned IDBI Bank.
A listed entity, IDBI Bank is grappling with mounting toxic loans with gross non-performing assets rising to about about Rs 57,807 crore at the end of the June quarter. During the three months ended June, the lender’s net loss stood at Rs 2,410 crore. The bank has a market capitalisation of over Rs 24,794 crore.
According to a notice submitted by the Life Insurance Corporation of India (LIC) to the CCI: “The proposed combination relates to the acquisition of a controlling stake to the extent of 51 per cent shareholding and management control rights in IDBI through preferential issue and open offer.”
Mergers and acquisitions beyond a certain threshold require approval of the Competition Commission of India (CCI). Earlier this month, IDBI Bank had said that LIC’s open offer to purchase shares from the minority shareholders of the state-owned bank will kick-start from December 3. (PTI)
