Westaim and Fairfax close strategic investment transaction
On June 2, 2017, The Westaim Corporation ("Westaim") announced that it successfully closed its previously announced transaction with Fairfax Financial Holdings Limited and certain of its subsidiaries (collectively, "Fairfax"), pursuant to which Fairfax agreed to invest up to C$100 million in Westaim, as well as closing its initial sale of preferred securities to Fairfax for C$50 million. Pursuant to the agreement, announced April 3, 2017, Fairfax will purchase, on a private placement basis, 5% interest rate preferred securities in an aggregate amount of up to C$100 million, issuable in tranches of not less than C$25 million.
Fairfax also agreed to invest up to US$500 million in investments sourced by Westaim's affiliate, Arena Investors, LP ("Arena Investors"). Fairfax's commitment to invest an initial US$125 million with Arena Investors was triggered by its initial purchase of preferred securities from Westaim.
Subject to the satisfaction of certain conditions (including Westaim's compliance with the indenture governing the preferred securities), Fairfax has agreed to invest an additional US$125 million with Arena Investors upon the next C$25 million drawdown of securities by Westaim, and an additional US$250 million upon the final C$25 million drawdown.
The proceeds from the private placement will be used by Westaim for potential acquisitions and for general corporate purposes.
Westaim is a Canadian investment company specializing in providing long-term capital to businesses operating primarily within the global financial services industry.
Fairfax is a holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and investment management.
Further information can be found on Canada Newswire's website.