Sumitomo Mitsui Banking Corporation Group (SMBC Bank) of Japan and Oaktree Capital Management are among those that have submitted expressions of interest (EoIs) for the strategic stake sale in IDBI Bank, said people aware of the matter. Oaktree is a US alternative assets firm founded by Howard Marks, one of the world’s most formidable distressed debt investors.
The stake being sold is held by the Centre and Life Insurance Corporation of India (LIC). “Multiple expressions of interest received for the strategic disinvestment of govt and LIC stake in IDBI Bank,” Tuhin Kanta Pandey, secretary, Department of Investment and Public Asset Management (DIPAM), had tweeted on January 7. “The transaction will now move to the second stage.” He did not give specific names.
The government and LIC together are looking to sell 60.72% in IDBI Bank and had invited bids from potential buyers last October. The two together hold 94.71% in the lender. The successful bidder will have to make an open offer for the acquisition of 5.28% of public shareholding.