Fairfax Financial has successfully sold a 4.995% slice of its subsidiary Odyssey Group to both CPPIB Credit Investments and OMERS, the defined benefit pension plan.
Each will acquire a 4.995% interest in Odyssey through a new class of securities, for an aggregate cash purchase price of $900 million.
CPPIB is a wholly-owned subsidiary of the Canada Pension Plan Investment Board, while OMERS covers Ontario’s municipal sector employees.
Fairfax intends to use the proceeds from the transaction to fund its previously announced offer to repurchase for cancellation up to $1 billion of its subordinate voting shares for cash.
The purchase price will not be less than $425 or more than $500 per subordinate voting share.
