Fairfax India to raise $500m through public, private offerings

A syndicate of underwriters co-led by RBC Capital Markets, Scotiabank and TD Securities will acquire 12.8 million subordinate voting shares for $11.75 each, according to a statement. Concurrently, parent company Fairfax Financial Holdings and Ontario Municipal Employees Retirement System (OMERS) will acquire 12.8 million and 17 million subordinate voting shares, respectively, for the same price.

The share price represents a discount to the stock's closing price of $11.82 on December 14. The underwriters will have the option to purchase up to an additional 15% of the public offering to cover over-allotments and for market stabilization. Both offerings are expected to close by mid-January 2017, subject to regulatory approval.

Canada-based Fairfax launched its India investment unit in November 2014 and raised $1 billion for the firm the following February through a combined IPO and private placement. Fairfax India is an investment holding company with the objective of achieving long-term capital appreciation through purchasing public and private equities and debt instruments in Indian businesses and companies with substantial exposure to the country. It targets investments that offer control or significant influence positions.

Fairfax India has made a number of significant investments since its launch. In an early deal it offered to buy a 26% stake in financial services company IIFL Holdings for INR16 billion ($255 million), eventually closing the transaction at INR13.4 billion for a 22% stake. This year the firm's activity includes investments in two chemical companies: a INR300 million commitment to PVC producer Sanmar Chemicals, and the INR3.7 billion buyout of aroma chemicals maker Privi Organics.

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• Topics
• South Asia
• Fundraising
• GPs
• Buyout
• India
• Ontario Municipal Employees Retirement Scheme