Fairfax Financial Plans to Redeem Preferred Shares Series G & H
Fairfax Financial to Redeem Preferred Shares
Fairfax Financial Holdings Limited, known for its robust strategies in property and casualty insurance, has made a significant announcement regarding its financial instruments. The company plans to redeem its outstanding Cumulative 5-Year Rate Reset Preferred Shares, Series G, totaling 7,719,843 shares, and its Cumulative Floating Rate Preferred Shares, Series H, which account for 2,280,157 shares. This redeeming process is set to occur soon, marking a pivotal move in their approach to financial management.
Understanding the Redemption Details
The planned redemption will be executed at a price of C$25.00 per share, culminating in an approximate total outlay of C$250 million, inclusive of any accrued and unpaid dividends leading up to the set redemption date. This strategy aims to streamline Fairfax's capital structure and open pathways for more strategic financial maneuvers. Shareholders will receive a formal notice ensuring that they are informed about these developments as stipulated by the company’s regulations.
Dividend Payments to Shareholders
In addition to the redemption price, shareholders of the Series G Shares will receive a final quarterly dividend of C$0.185125 on the redemption date, while the Series H Shareholders will see their final dividend of C$0.32792 distributed a day earlier. This approach reflects Fairfax's commitment to maintaining shareholder value while transitioning its financial strategy.
Implications of the Redemption Process
With the planned redemption of these preferred shares, Fairfax’s Series G and H will cease to trade on recognized exchanges following the completion of the process. This move not only signifies Fairfax's operational enhancements but showcases their adaptability in a competitive insurance landscape.
About Fairfax Financial
Fairfax Financial is a prominent holding company dedicated to property and casualty insurance, alongside reinsurance operations. Their business model is powered through subsidiaries that focus on offering comprehensive insurance solutions while effectively managing investment resources. This strategic orientation is crucial for their growth and resilience in the market.
Contact Information for Inquiries
Shareholders or potential investors seeking additional information regarding this redemption process can reach out to Computershare Trust Company of Canada, which acts as the transfer agent for these preferred shares. Fairfax's dedicated contact personnel can also be traced to John Varnell, Vice President of Corporate Development, who can be contacted at (416) 367-4941.
Frequently Asked Questions
What shares are being redeemed by Fairfax Financial?
Fairfax Financial is redeeming its Cumulative 5-Year Rate Reset Preferred Shares, Series G, and Cumulative Floating Rate Preferred Shares, Series H.
What will be the redemption price for the preferred shares?
The redemption price is set at C$25.00 per share for both Series G and Series H.
When will the redemption take place?
The redemption is scheduled for September 30, 2025, for Series G and September 29, 2025, for Series H shareholders.
Will dividends be paid on these shares?
Yes, final quarterly dividends will be paid to shareholders before the redemption; Series G will receive C$0.185125 and Series H will receive C$0.32792.
Who should shareholders contact for more information?
Shareholders should contact their brokers or Computershare for details regarding the redemption process.
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