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Govt seeks to appoint advisors to assist IDBI Bank privatisation

Business Standard  

The government has sought bids to appoint transaction advisor and legal advisor to assist it for the strategic divestment and transfer of management control in IDBI Bank. The appointment of intermediaries would help in taking the privatisation process of the lender forward as the government aims to close the transaction in this fiscal. The government plans to sell its 45.48% shareholding in the lender. Life Insurance Corporation of India (LIC), which owns 49.24 %, will also offload its stake to transfer management control to the new buyer. The transaction advisor would be required to advise the government on the modalities and the timing of the disinvestment, and prepare a scheme to successfully implement the sale. Any company that owns more than 50% stake in a merchant bank, seeking to assist the government as the transaction advisor, would not be able to participate in the bidding process to acquire the bank.