Govt close to accepting sweetened Fairfax Financial offer for IDBI Bank

India’s government is close to accepting an offer from Fairfax Financial Holdings Ltd. for IDBI Bank Ltd., possibly at a slightly higher price, according to people with knowledge of the matter.

Fairfax, which had originally submitted a valuation for IDBI Bank that was rejected as it was below the government’s so-called reserve price, might raise its per-share bid by a few rupees, the people said, asking not to be identified as the deliberations are private. They declined to share specifics.

Emails to the Finance Ministry and Fairfax Financial weren’t immediately answered. Final approvals are needed from the Indian cabinet and Reserve Bank of India for the deal to proceed.

Fairfax Financial recently brought ‌capital into the country ahead of a potential deal to buy the IDBI stake, Reuters reported earlier.

The Narendra Modi-led government — which has not made public the minimum reserve price — has been unsuccessful in selling the Mumbai-based lender for several years. A successful transaction would mark the biggest government-backed disposal of a majority stake in a domestic bank in years.

Fairfax Financial, founded by Indian-born Canadian billionaire Prem Watsa, was the frontrunner to buy the stake, while Emirates NBD PJSC had also bid, Bloomberg reported earlier.