Fairfax India announces US$105 million substantial issuer bid

On June 15, 2021, Fairfax India Holdings Corporation (“Fairfax India”) announced that its Board of Directors authorized, and the company formally commenced, a substantial issuer bid, pursuant to which Fairfax India will offer to repurchase for cancellation up to US$105 million of its subordinate voting shares from shareholders for cash.

The offer will proceed by way of a “modified Dutch auction”, which allows shareholders to select the price, within the specified range, at which each shareholder is willing to sell all or a portion of their shares. The offer prices range from US$12.50 to US$15.00 per share (in increments of US$0.10 per share). The offer will be for up to a maximum of 8,400,000 shares, or approximately 7.0% of Fairfax India’s 119,323,756 total issued and outstanding shares, based on full participation and a purchase price equal to the minimum purchase price per share.

The offer will expire at 5:00 p.m. (Eastern time) on August 6, 2021, unless extended or withdrawn by Fairfax India. Upon expiry, Fairfax India will determine the lowest purchase price (which will not be more than US$15.00 per share and not less than US$12.50 per share) that will allow the company to purchase the maximum number of shares properly tendered, and not properly withdrawn, having an aggregate purchase price not exceeding US$105 million.

Further information can be found on Globe Newwire’s website.

Fairfax India is an investment holding company whose objective is to achieve long term capital appreciation, while preserving capital, by investing in public and private equity securities and debt instruments in India and Indian businesses or other businesses with customers, suppliers or business primarily conducted in, or dependent on, India.