Fairfax Financial Announces Redemption of Preferred Shares
TORONTO — Fairfax Financial Holdings Limited (“Fairfax”) (TSX: FFH and FFH.U) has set a definitive plan to redeem its outstanding Cumulative Preferred Shares Series I and J. This significant move involves redeeming all 10,420,101 Series I shares and 1,579,899 Series J shares. The redemption is scheduled for December 31, 2025, at a price of C$25.00 per share, totaling an impressive C$300.0 million, alongside any accrued dividends up until the redemption date.
Details of the Redemption Plan
Formal notification has been dispatched to the registered holder of the Preferred Shares, in line with the stipulated terms outlined in Fairfax’s articles. It is pivotal for shareholders to note that along with the principal redemption, the final dividends will be distributed as planned. The last quarterly dividend for the Series I Shares will amount to C$0.207938, with payment occurring on the same day as the redemption date. Meanwhile, holders of the Series J Shares will receive their final dividend of C$0.34727 on December 30, 2025, provided they are registered by December 15, 2025.
What Non-Registered Holders Should Do
For those holding Preferred Shares in a non-registered capacity, the process for redemption requires contacting their respective brokers or intermediaries. This guidance is vital to ensure a smooth redemption process. Fairfax’s designated transfer agent, Computershare Trust Company of Canada, remains available for any queries. Investors can reach Computershare at 1-800-564-6253 or through their dedicated email for corporate actions.
Post-Redemption Transition
After the completion of the redemption process, both the Series I Shares and Series J Shares will be delisted from the Toronto Stock Exchange (TSX) and will cease trading. This transition marks an important milestone for Fairfax as it continues to streamline its capital structure.
The Role of Fairfax Financial
Fairfax operates as a holding company that specializes in property and casualty insurance and reinsurance through its various subsidiaries. The company also adeptly manages investments, allowing it to capitalize on diverse market opportunities. As Fairfax makes strategic decisions such as this redemption, it reflects a commitment to enhancing shareholder value while managing its financial obligations responsibly.
Frequently Asked Questions
What shares are being redeemed by Fairfax?
Fairfax is redeeming all outstanding Cumulative Preferred Shares Series I and J.
When is the redemption date for the Preferred Shares?
The redemption is scheduled for December 31, 2025.
What is the redemption price per share?
The redemption price is set at C$25.00 per share.
How can non-registered shareholders participate in the redemption process?
Non-registered shareholders should contact their broker or intermediary for information on the redemption process.
Who can I reach out to for more information about the redemption?
For inquiries regarding the redemption process, shareholders can contact Computershare, Fairfax’s transfer agent, at 1-800-564-6253.
