Fairfax acquires 13.7 per cent stake in Stelco for $250M
Stelco's chief executive Alan Kestenbaum says Fairfax's investment "represents a vote of confidence in our future"
TORONTO—Fairfax Financial Holdings Ltd. says it has bought a 13.7 per cent stake in steel producer Stelco Holdings Inc. for roughly $250 million.
The insurance-focused financial services company says it has acquired 12.2 million common shares of the Hamilton-based firm for $20.50 each.
That price represents a 4.2 per cent premium to Stelco’s closing price of $19.67 on Friday.
Stelco Holdings owner Bedrock Industries says it sold the shares to Fairfax and its subsidiaries via a private share purchase agreement.
Bedrock now holds roughly 46.4 per cent of Stelco’s outstanding common shares, down from 60.1 per cent before the sale.
Stelco’s chief executive Alan Kestenbaum says Fairfax’s investment “represents a vote of confidence in our future.”