Fairfax to hike stake in Sanmar to 43% by the first half of 2019

Fairfax to extinguish $388 mn in bonds and interest in March 2019 and use half the proceeds to increase its stake in Sanmar

Fairfax India Holdings Corporation is set to increase its stake in Chennai-based Sanmar Chemicals Group to 43 per cent.

In 2016, Fairfax India had completed an investment in Sanmar, of $300 million (Rs 19.9 billion) in bonds maturing on April 22, 2023, along with common shares, representing 30 per cent equity interest. 

It subsequently signed an agreement with Sanmar pursuant to which the latter would settle the $300 million bonds along with 13 per cent on the date of cancellation. On March 31, 2019, the amount would work out to approximately $388 million (Rs 28.2 billion at the current exchange rate). 

Fairfax India