Differences over the valuation of IDFC Ltd have come in the way of its proposed merger with Shriram Group to create a financial services company with combined revenue of $4 billion, said three people aware of the development.
Shareholders of IDFC such as Enam Holdings Pvt. Ltd and Sipadan Investments (Mauritius) Ltd, a subsidiary of Malaysian sovereign wealth fund Khazanah Nasional Bhd, have demanded a higher valuation for the company, citing bright prospects for IDFC Bank Ltd and other subsidiaries, the people said on condition of anonymity.
IDFC and Shriram announced their merger plan on 8 July, agreeing on a 90-day exclusivity period for completing the due diligence process. The exclusivity period was later extended until 8 November.
