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Fairfax Financial - CEO, Prem Watsa.
CEO, Prem Watsa.
Source: செல்வா at Tamil Wikipedia.
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  • Fairfax (FFH) will buy back US$1 billion of its stock and sell its 9.99-per-cent minority stake in Odyssey Group
  • OMERS and an affiliate of CPPIB Credit Investments will purchase the Odyssey Group stake for US$900 million
  • The issuer bid will proceed by way of a modified Dutch auction for up to a maximum of 8.72 per cent of Fairfax’s issued and outstanding shares
  • Both the sale and the issuer bid will close in Q4 2021
  • Fairfax is a holding company engaged in property and casualty insurance and reinsurance and the associated investment management
  • Fairfax Financial (FFH) is up by 8.02 per cent and is currently trading at $587 per share

Fairfax (FFH) will buy back US$1 billion of its stock and sell its 9.99-per-cent minority stake in Odyssey Group.

The company entered into an agreement with OMERS and an affiliate of CPPIB Credit Investments, pursuant to which each will acquire a new series of securities representing a 4.995-per-cent interest in Odyssey Group, Fairfax’s U.S.-based reinsurance and insurance subsidiary, for a total of US$900 million.

The Odyssey Group transaction is expected to close in Q4 2021.

The issuer bid will proceed by way of a modified Dutch auction for up to a maximum of 8.72 per cent of Fairfax’s issued and outstanding shares. The offer prices range from US$425 to US$500 per share.

The offer will expire at 5:00 pm ET on December 23, 2021.

Fairfax intends to use proceeds from the Odyssey Group transaction to fund the issuer bid, though neither is conditional upon the other.

Fairfax is a holding company engaged in property and casualty insurance and reinsurance and the associated investment management.

Fairfax Financial (FFH) is up by 8.02 per cent and is currently trading at $587 per share as of 9:57 am ET.

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