Catholic Syrian Bank (CSB) is once again considering going public as talks for a private stake sale to Canadian billionaire Prem Watsa’s Fairfax Financial Holdings have fallen through, two people aware of the development said.
“An IPO (initial public offering) is back on the table for Catholic Syrian Bank. They are seriously exploring that. They are in preliminary discussions, though no final decision has been taken as of yet. For now, they are exploring an IPO and continue to explore a private stake sale,” said one of the persons cited above, requesting anonymity as the negotiations are private.
The failure of talks with Fairfax, which had been on for over six months, is the reason why the private sector lender is looking at reconsidering a public offering, he added.
On 30 June, Mint reported that Watsa-helmed Fairfax Financial Holdings’ proposed deal to pick up a 51% stake in CSB had fallen through over differences in valuation.
According to a 30 May Bloomberg report, an external agency hired by the bank arrived at a valuation of Rs165-200 a share, plus a control premium of at least 15%. Fairfax was unwilling to match the price being sought by the bank, based on this valuation.
“We would not like to comment on the capital-raising plans of the bank,” a spokesperson…