Fairfax India completes US$500 million equity financing

January 13, 2017

Torys represented Fairfax India with a team that included David Chaikof, Jim Hong, Michael Zackheim, Robbie Leibel and Kevin Armitage (corporate/securities), John Tobin and Patrick Shaughnessy (tax) and Andy Beck (U.S. securities).

On January 13, 2017, Fairfax India Holdings Corporation ("Fairfax India") completed its previously announced bought deal public offering of 12,766,000 subordinate voting shares at a price of US$11.75 per share, for gross proceeds of approximately US$150 million.

The public offering was underwritten by a syndicate of underwriters co-led by RBC Capital Markets, Scotiabank and TD Securities Inc., who have also been granted an over-allotment option by Fairfax India, exercisable in whole or in part at any time for a period of 30 days after closing, to purchase up to an additional 1,914,900 subordinate voting shares, which, if exercised in full, would increase the total gross proceeds of the public offering to approximately US$172.5 million.

Concurrent with the public offering, Fairfax India issued to Financial Holdings Limited ("Fairfax") and OMERS, the pension plan for Ontario's municipal employees, 12,766,000 subordinate voting shares and 17,021,500 subordinate voting shares, respectively, at a price of US$11.75 per share in a concurrent private placement for aggregate gross proceeds of approximately US$350 million. The gross proceeds of both offerings were approximately US$500 million.

Fairfax India is an investment holding company. Its investment 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.

Further information can be found on Fairfax India’s website.