Fairfax Africa completes US$150 million bought deal financing

On June 18, 2018, Fairfax Africa Holdings Corporation ("Fairfax Africa") announced that it completed its previously announced bought deal public offering of 12,300,000 subordinate voting shares at a price of US$12.25 per share, for gross proceeds of approximately US$151 million.

The offering was underwritten by a syndicate of underwriters co-led by RBC Capital Markets, Scotiabank and TD Securities Inc., that included CIBC World Markets Inc., BMO Capital Markets, National Bank Financial Inc., HSBC Securities (Canada) Inc., Raymond James Ltd., Canaccord Genuity Corp., GMP Securities L.P., Manulife Securities Incorporated, Cormark Securities Inc., Desjardins Securities Inc. and Eight Capital. The underwriters have been granted an over-allotment option, exercisable in whole or in part at any time for a period of 30 days after the closing of the offering, to purchase up to an additional 1,845,000 subordinate voting shares, which, if exercised in full, would increase the total gross proceeds of the offering to approximately US$173 million.

As part of the offering, Fairfax Financial Holdings Limited ("Fairfax") and OMERS, the defined benefit pension plan for Ontario's municipal employees, each purchased, directly or through an affiliate, 4,100,000 subordinate voting shares for approximately US$50 million at the offering price.

The net proceeds of the offering will be used to acquire new African Investments and for general corporate purposes, including the repayment of indebtedness.

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

Further information can be found on Globe Newswire's website.