Fairfax commences bid for voting shares, 10 series of preferreds

By Taylor Fox

New York, Sept. 28 – Fairfax Financial Holdings Ltd. intends to commence a normal course issuer bid through the facilities of the Toronto Stock Exchange for its subordinated voting shares and 10 series of preferred shares, according to a news release.

Fairfax’s board of directors has approved the purchase from Sept. 30 to Sept. 29, 2021.

According to a company announcement, Fairfax will buy up to

• 2,455,854 of its 27,241,281 outstanding subordinate voting shares, with a daily limit of 20,420;

• 751,034 of its 7,515,642 outstanding cumulative five-year rate reset preferred shares, series C, with a daily limit of 2,956;

• 178,415 of its 2,484,358 outstanding cumulative floating-rate preferred shares, series D, with a daily limit of 1,000;

• 543,613 of its 5,440,132 outstanding cumulative five-year rate reset preferred shares, series E, with a daily limit of 2,001;

• 173,574 of its 2,099,046 outstanding cumulative floating-rate preferred shares, series F, with a daily limit of 1,000;

• 743,295 of its 7,432,952 outstanding cumulative five-year rate reset preferred shares, series G, with a daily limit of 2,935;

• 256,704 of its 2,567,048 outstanding cumulative floating-rate preferred shares, series H, with a daily limit of 1,000;

• 1,046,555 of its 10,465,553 outstanding cumulative five-year rate reset preferred shares, series I, with a daily limit of 2,413;

• 153,444 of its 1,534,447 of outstanding cumulative floating-rate preferred shares, series J, with a daily limit of 1,000;

• 950,000 of its 9.5 million of outstanding cumulative five-year rate reset preferred shares, series K, with a daily limit of 3,277; and

• 919,600 of its 9.2 million outstanding cumulative five-year rate reset preferred shares, series M, with a daily limit of 2,572.

As with previous bid, the company said that it is making the issuer bid for the securities because buying them “in appropriate circumstances” represents “an attractive investment opportunity” and that doing so will enhance the value of the shares.

Under the company’s existing normal course issuer bid, Fairfax has purchased 2,556,821 of its subordinate voting shares during the past 12 months at weighted average prices per share of C$403.03.

Fairfax also entered into an automatic share purchase plan with a designated broker to allow for the purchase of its subordinate voting shares and each series of its preferred shares at times when Fairfax normally would not be active in the market due to applicable regulatory restrictions or internal trading black-out periods.

Fairfax is a Toronto-based financial services holding company that owns property and casualty insurance and reinsurance and investment management subsidiaries.

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