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  • Fairfax India (FIH.U) has sold its 48.8 per cent equity interest in Privi Speciality Chemicals
  • The company sold its stake to certain entities affiliated with Mahesh P. Babani and D.B. Rao
  • The buyers paid approximately US$163 million at current exchange rates
  • The transaction is expected to close in Q2 2021
  • Fairfax India will also invest in non-convertible debentures of up to approximately US$7 million to be issued by entities affiliated with Babani
  • Privi Speciality Chemicals is India’s leading manufacturer, supplier and exporter of aroma and fragrance chemicals
  • Fairfax India is an investment holding company focused on equity securities and debt instruments in India
  • Fairfax India (FIH.U) is up by 0.63 per cent and is currently trading at US$12.79 per share

Fairfax India (FIH.U) has sold its 48.8 per cent equity interest in Privi Speciality Chemicals.

The company sold its stake to certain entities affiliated with Mahesh P. Babani and D.B. Rao for approximately US$163 million at current exchange rates.

The transaction is expected to close in Q2 2021.

Fairfax India also intends to invest in non-convertible debentures of up to approximately US$7 million at current exchange rates to be issued by entities affiliated with Babani.

Prem Watsa, Chairman of Fairfax India, commented,

“We have had a great partnership with Mahesh Babani at Privi. We have admired Mahesh’s visionary leadership and believe that consolidating his shareholding is in the best interest of Privi’s future growth. We wish him continued success in the future.”

Mahesh P. Babani, Chairman and Managing Director of Privi, added,

“We have had a long and successful partnership with Fairfax India. This partnership has enabled Privi to grow to its current scale. We believe that consolidating our holding in Privi from 22.7 to 74.1 per cent will facilitate accelerated growth and take Privi to greater heights through both organic and inorganic opportunities.”

Privi Speciality Chemicals is India’s leading manufacturer, supplier and exporter of aroma and fragrance chemicals.

Fairfax India is an investment holding company focused on equity securities and debt instruments in India.

Fairfax India (FIH.U) is up by 0.63 per cent and is currently trading at US$12.79 per share as of 11:32 am ET.

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