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Fairfax Financial offers to purchase UK’s Advent Capital


July 31, 2008   by Canadian Underwriter


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Toronto-based Fairfax Financial Holdings Limited (TSX: FFH) has made an offer of Cdn$135 million to purchase the remaining shares of Advent Capital (Holdings) PLC.
Fairfax owns 44.5% of Advent’s existing issued share capital, according to a Fairfax representative.
Advent is a UK-based holding company of a specialist property reinsurance and insurance underwriting group. It is listed on the AIM market of the London Stock Exchange.
A Lloyd’s syndicate, Advent is predominantly a short-tail property reinsurance and insurance syndicate specializing in catastrophe business, but also underwriting some specialist lines such as energy and marine excess of loss, the Advent site says.
Under the terms of the offer, Advent shareholders would receive 165 pence (roughly Cdn$3.35) per share.
“The offer was discussed by Prem Watsa, the chairman and CEO of Fairfax, with Brian Caudle, chairman of Advent, prior to its release,” Advent says in its online response to the offer.
“The board recognizes that Fairfax, as a financial and strategic investor in the insurance industry, must act in what it sees as the best interests of its own shareholders but the board must be mindful of the real, longer term value of the Advent business and will consider all options available to the company.”
Advent shareholders are advised to take no action pending the formal confirmation of the board’s views, the response concludes.
Two Advent shareholders have already sent a letter of intent, the Fairfax representative told Canadian Underwriter, which would bring Fairfax’s ownership to more than 60% of Advent’s shares.
Fairfax is a financial services holding company. Through its subsidiaries, is engaged in property and casualty insurance and reinsurance investment management in Canada and abroad.


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