Canada's Fairfax Financial Holdings will buy a majority stake in India's IDBI Bank, the Indian government said on Wednesday.
The government has approved the strategic restructuring of IDBI Bank, Information Minister Ashwini Vaishnaw said.
The deal will be worth more than 520 billion rupees ($5.47 billion), the minister said. Fairfax will offer 81 rupees per share of IDBI Bank.
India's federal government and state-run Life Insurance Corp of India are selling a combined 60.7% stake in IDBI Bank.
The government and LIC will retain a 34% stake in the lender after the transaction.
The sale of the lender was first announced in 2022, but has dragged since then due to regulatory and procedural issues. It was shelved in March as bids fell short of the government's sale price expectation.