Fairfax to acquire 30% of Sanmar


Investment holding company Fairfax India, through wholly owned subsidiaries, is to invest US$300 million in Sanmar Chemicals Group. The deal will be done by a combination of equity and fixed income securities resulting in Fairfax India acquiring a 30% stake in Sanmar while generating a fixed return on its investment.

Plastic_tubesFairfax India is limited to investing no more than 25% of its total assets in any single investment, which equates to roughly US$250 million. The company will therefore fund an initial tranche of US$250 million when the transaction closes and add a second tranche of US$50 million within 90 days after that through Fairfax Financial Holdings or another investor.

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