Fairfax Financial Holdings Ltd., the investment company owned by Prem Watsa, has acquired a stake in Stelco Holdings Inc.
The almost 13.7% stake makes Fairfax the second largest shareholder of the steel company based in Hamilton, Ontario, according to Bloomberg.
The Toronto-based firm acquired 12.2mn shares in the manufacturer, paying CAD$20.5 (US$15.43) per share. In total the deal has been valued at CAD$250mn (US$190mn).
The acquisition has been deemed “a vote of confidence in our future” by Alan Kestenbaum, Chief Executive Officer of Stelco.
The shares in the Stelco were sold to Fairfax through a private share purchase agreement, according to Bedrock Industries, Stelco’s owner.
Bedrock, which is owned by Lindsay Goldberg LLC, now owns approximately 46.4% of the company, down from around 60.1%.
“We are delighted to welcome Fairfax as a similarly-minded, long-term strategic investor alongside Lindsay Goldberg,” Kestenbaum noted.