- 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.