IDBI stake sale: 7 companies on the list of transaction advisors

Seven international companies, including some of the four largest global advisory firms, were shortlisted as transaction advisors for the sale of the government’s stake in IDBI Bank.

Deloitte Touche Tohmatsu India, EY, KPMG, JM Financial, ICICI Securities, RBSA Advisors and SBI Capital Markets are in the running for the all-important appointment of Investments and Public Asset Management (DIPAM) on August 10, according to a release from the department selected by seven companies as transaction advisor.
The government has initiated the sales process for its stake in IDBI Bank, in which the government’s stake is 45.48%, the LIC of India 49.24% and the non-promotional stake 5.29%. the strategic divestment of IDBI Bank in May this year, which includes the transfer of management control.
The government also clarified that bidders for the appointment of a transaction advisor for the strategic sale of Banco IDBI cannot bid in a consortium, adding that the advisor will remain for five years after his appointment. it will be paid at the time of the pre-selection of the bidders after receipt of the expressions of interest (EoI). The rest will be paid after the transaction is completed.
DIPAM has excluded public banks that cannot participate as bidders in the acquisition of IDBI Bank from the transaction process. Subsidiaries of IDBI Bank – IDBI Capital Markets – cannot participate as bidders or as transaction advisors. more than 50% stake in the banker’s share capital or control over the banker in order to participate in the competitive process to acquire IDBI Bank.

Among the various criteria listed for admission, Bidders to the Transaction Advisor must have completed at least one strategic disposal, strategic sale, or merger and acquisition transaction of at least Rs.5,000 billion between April 2016 and March 2021.The relevant Transaction Advisor is a subsidiary of a existing retail bank, he must submit documents explaining the Chinese firewall or wall structure in order to protect confidentiality and conflicts of interest.

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