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Fairfax India completes equity infusion in Sanmar Group, takes stake to 43%

Under the deal, Sanmar bought back bonds worth Rs 1,990 crore that had sold to Fairfax, which partly re-invested the proceeds into the chemical-making group's equity

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Watsa said profitability is expected to improve significantly with capacity addition in Egypt.

T E Narasimhan Chennai
Fairfax India Holdings Corporation has completed an equity infusion into Chennai-based Sanmar Chemicals Group, taking its equity interest in the group to about 43 per cent.

Under the terms of the deal, Sanmar bought bonds worth $300 million (around Rs 1,990 crore) held by Fairfax India, along with accrued interest at an effective annual interest rate of 13 per cent, for a net cash consideration of approximately $425 million (Rs 3,020 crore).

Fairfax India re-invested approximately $200 million (Rs 1,420 crore) of the cash consideration received from the bond sale to buy Sanmar common shares. 

Following this investment, Fairfax India’s equity interest in

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