Intends to use the net proceeds to fund the previously announced proposed acquisition of Odyssey Re Holdings
Fairfax Financial Holdings has confirmed that it has received commitments to purchase all of the 2,881,844 subordinate voting shares offered on an agency basis in equity offering. Together with the 600,000 subordinate voting shares agreed to be purchased by the syndicate of underwriters in the underwritten portion of the offering, Fairfax has received commitments for the purchase of $1 billion of subordinate voting shares.
Reportedly, Fairfax intends to use the net proceeds of the offering to fund the previously announced proposed acquisition of all of the outstanding shares of common stock of Odyssey Re Holdings, that it does not currently own. There can be no assurance that such acquisition will be completed. However, it has been reported that if the acquisition is not successfully completed, Fairfax intends to use the net proceeds to: augment its cash position; to increase short term investments and marketable securities held at the holding company level; to retire outstanding debt and other corporate obligations from time to time; and for general corporate purposes.
Fairfax intends to file a prospectus supplement to its short form base shelf prospectus dated August 31, 2009, in respect of this offering with the applicable Canadian and US securities regulatory authorities. The offering is expected to close on September 11, 2009.
Fairfax is a financial services holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and investment management.