Fairfax investing $648 million in Seaspan Corp. to double investment in shipper
by The Canadian Press
Toronto-based Fairfax Financial Holdings Ltd. now has a total stake of roughly $1.3 billion in the Hong Kong-based shipping firm
TORONTO—Fairfax Financial Holdings Ltd. is investing $648 million in Seaspan Corp. to bring its total stake in the shipping company to roughly $1.3 billion.
CEO Prem Watsa says in a statement the investment represents one of its largest in a public company and demonstrates its faith in the shipper’s growth prospects.
Hong Kong-based Seaspan leases and manages the huge container ships that form the backbone of the global shipping industry.
Seaspan says Fairfax subsidiaries will be making the investment through the exercise of warrants and that it will help its balance sheet.
Fairfax had made an initial investment of $324 million in Seaspan in February and entered into an agreement to double that investment in March.
Fairfax is a Toronto-based holding company involved in property and casualty insurance that also holds a diverse investment portfolio.