The Keg Royalties Income Fund enters into arrangement agreement with an affiliate of Fairfax Financial

On June 17, 2025, The Keg Royalties Income Fund (“Keg Royalties”) announced that it entered into an arrangement agreement with 1543965 B.C. Ltd. (the "Purchaser"), an affiliate of Fairfax Financial Holdings Limited (collectively with its affiliates, “Fairfax”) pursuant to a previously announced non-binding letter of intent dated on May 5, 2025.

Under the arrangement agreement, the Purchaser will acquire all of the issued and outstanding units of Keg Royalties, other than those already owned by Fairfax (which currently owns approximately 33.92% of the units of Keg Royalties on a fully-diluted basis), for a price of C$18.60 per unit, payable in cash.

The transaction, which will implemented by way of a statutory plan of arrangement under the Business Corporations Act (British Columbia), is the product of extensive, arm’s length negotiations between the board of trustees of Keg Royalties (the “Trustees”) and representatives of Fairfax. The Trustees, and certain other unitholders, after receiving legal and financial advice, fairness opinions and a formal valuation, unanimously determined that the transaction is in the best interests of Keg Royalties and fair to the unitholders, and unanimously recommend that unitholders vote in favour of the transaction.

Closing of the transaction is expected to take place in the third quarter of 2025, subject to customary closing conditions, including court approval, the approval of eligible unitholders at a special meeting to be called to approve the transaction, approval of the Toronto Stock Exchange and regulatory approval under the Competition Act (Canada).

Further information can be found on GlobeNewswire’s website.

Keg Royalties is a limited purpose, open-ended trust established under the laws of the Province of Ontario that, through The Keg Rights Limited Partnership, a subsidiary of Keg Royalties, owns certain trademarks and other related intellectual property used by Keg Restaurants Ltd.

Fairfax Financial is a holding company which, through its subsidiaries, is primarily engaged in property and casualty insurance and reinsurance and the associated investment management.