Fairfax Brings Its Investment in Seaspan to USD 1 Bn

Image Courtesy: Pixabay

Toronto-based financial holding company Fairfax Financial Holdings Limited has agreed to invest an additional USD 500 million of equity in Seaspan Corporation, increasing its total investment in Seaspan to USD 1 billion.

“Our Board of Directors and management team are excited by this transformative investment, which will further bolster Seaspan’s strategy to lead consolidation in the fragmented containership sector and capitalize on the most compelling opportunities in the shipping sector and beyond it,” David Sokol, Chairman of Seaspan Corporation, commented.

The company’s consolidation push resulted in Seaspan’s acquisition of Greater China Intermodal Investments, which owns a fleet of 18 containerships, comprising 10,000 TEU and 14,000 TEU eco-class vessels.

 “As the global containership industry continues to consolidate, we believe owner-operators like Seaspan, with financially sound balance sheets, will have excellent growth prospects. We are excited about Seaspan’s outstanding progress over the past six months, and with David Sokol’s proven capital allocation and shareholder value creation credentials, we are thrilled to expand our relationship,” Prem Watsa, Chairman and Chief Executive Officer of Fairfax.

Under the terms of the transaction, upon exercise of the warrants issued to Fairfax, in January 2019 Fairfax will acquire approximately 38.46 million Class A common shares at an exercise price of USD 6.50 per share, for a total equity investment of USD 500 million.

Seaspan will issue Fairfax seven year warrants to acquire 25 million Class A common shares at an exercise price of USD 8.05 per share and amend the terms of the debentures that were issued in February 2018 and those to be issued in January 2019 to allow Fairfax to call for early redemption of those debentures.

This will bring Fairfax’s total investment in Seaspan to USD 1 billion, consisting of USD 500 million of Class A common shares and USD 500 million in debentures.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Oct 2018 >>
MTWTFSS
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30 31 1 2 3 4

Ocean Energy Europe Conference & Exhibition 2018

The annual Ocean Energy Europe Conference & Exhibition is the meeting point for the whole ocean energy sector…

read more >

Europort 2018

From 15-17 May 2018, the 12th edition of Europort Romania willl take place in the IDU Hall in Constanta…

read more >

CWC World LNG & Gas Series: 10th Asia Pacific Summit

Bringing together the key LNG buyers and sellers from across the globe, the Summit provides…

read more >

Offshore Energy Exhibition & Conference (OEEC)

It is unique in bringing together the oil and gas, offshore wind and marine energy industry…

read more >