Fairfax selling stake in Odyssey Re to Canadian pension funds

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Fairfax Financial Holdings Ltd. FFH, +6.81% said Wednesday it agreed to sell a roughly 5% interest in its U.S. based reinsurance and insurance unit Odyssey Group Holdings Inc. for $900 million to Canadian pension funds CPPIB Credit Investments and OMERS. The buyers will acquire 100% of a new series of securities that represent the stake in Odyssey Group Holdings. Fairfax will retain flexibility to repurchase the interests of OMERS and CPPIB Credit Investments in Odyssey Group over time. Fairfax also announced an offer to repurchase for cancellation up to $1 billion of its subordinate voting shares from shareholders for cash. The offer will be in the form of a modified Dutch auction at a prices range from $425 to $500 per share. Fairfax Financial shares rose 2% in premarket trades.

This article was originally published by Marketwatch.com. Read the original article here.

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