NEW DELHI: Fairfax India Holdings Corporation (Fairfax India) has completed a $225 million credit facility with a syndicate of Canadian banks. Fairfax India is an investment holding company which invests in public and private equity securities and debt instruments in India.
Fairfax India earlier announced that its earnings in financial year 2015 were $40.9 million ($0.42 per basic share), derived from interest income on its investment portfolio and unrealised gains on investments. On February 8, 2016 Fairfax completed the acquisition of 45 per cent of Adi Finechem Limited for consideration of approximately $19 million.
On March 28, 2016 the company announced that they, along with Fairfax Financial Holdings Limited (Fairfax), through their wholly-owned subsidiaries in Mauritius, would collectively acquire 33 per cent of the equity of Bangalore International Airport Limited from Bangalore Airport & Infrastructure Developers Private Limited, a wholly-owned subsidiary of GVK Power and Infrastructure Limited, for an aggregate investment of Rs 21.49 billion (approximately $325 million at current exchange rates).
As Fairfax India is limited to investing not more than 25 per cent of its total assets in any single investment (this currently limits any single investment to approximately $250 million), it will invest $250 million, while Fairfax India Holdings Corporation or another investor will invest the remaining amount if the company cannot do so. The transaction is subject to customary closing conditions and third party consents, including lender consents. On April 8, 2016 the company announced that, through its wholly-owned subsidiaries, it had agreed to invest $300 million into the Sanmar Chemicals Group (“Sanmar”), through a combination of equity and debt securities resulting in a 30 per cent equity ownership in Sanmar.
Fairfax India will fund an initial tranche of $250 million upon the closing of the transaction, and the second tranche of $50 million will be funded within 90 days thereafter by the company, Fairfax India Holdings Corporation or another investor. The first tranche is expected to be completed in the second quarter of 2016 upon the satisfaction of certain conditions precedent. If the second tranche is not completed, the company’s equity ownership in Sanmar will be reduced to 25 per cent.
On July 12, 2016 the company announced that through its wholly-owned subsidiaries, it had agreed to acquire a 51 per cent equity ownership of Privi Organics for approximately $55 million at exchange rates on the announcement date. The transaction is subject to customary closing conditions and is expected to close in the third quarter of 2016.
