Fairfax increases its stake in Mytilineos
Fairfax Financial Holdings Limited agreed to increase its investment in Mytilineos SA by an additional amount of 50 million euros, plus a potential for a further €50 million, in light of Mytilineos’ strong performance and outstanding growth prospects.
The parties have entered into an agreement for the sale and purchase of 2,702,703 of Mytilineos’ treasury shares, at a price of €18.5 per share for a total value of €50 million. As a result of this first phase of the agreement, the 2,702,703 shares are expected to be transferred to Fairfax on or before January 9.
Upon completion of this share purchase, Fairfax will become the second largest shareholder in Mytilineos and will hold 6,688,047 shares, representing approximately 4.68% of the outstanding shares of Mytilineos.
Together with the transfer of the shares, the parties will also enter into an €50 million exchangeable bond whereby Fairfax will have a two-year option to acquire a further 2.5 million of Mytilineos’ treasury shares at a price of €20 per share.
Fairfax’s Chairman and CEO Prem Watsa stated: “We are thrilled to increase Fairfax’s investment in Mytilineos. The company has an excellent track record, and we look forward to working with Evangelos Mytilineos and his team in growing their business over the long term.”
Mytilineos’ Chairman and CEO Evangelos Mytilineos said, “We welcome Fairfax as the second largest shareholder in Mytilineos, proving an excellent relationship, developed since 2012 when Fairfax purchased its first shares in the company, and acknowledging the solid performance of Mytilneos over all these years.”
