August 26, 2016 07:58 ET
TORONTO, ONTARIO--(Marketwired - Aug. 26, 2016) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
(Note: All dollar amounts in this news release are expressed in U.S. dollars, except as otherwise noted).
Fairfax India Holdings Corporation (TSX:FIH.U) is pleased to announce that, through its wholly-owned subsidiaries (collectively, "Fairfax India"), it has completed its previously announced acquisition of approximately 51% of the outstanding shares of Privi Organics Limited ("Privi Organics") for an aggregate consideration of approximately INR 3.7 billion (approximately $55 million at current exchange rates).
As previously disclosed, the boards of directors of Adi Finechem Limited ("Adi Finechem") and Privi Organics have approved a merger arrangement involving the two companies to build an Indian speciality chemicals champion, with both companies converting renewable waste feedstocks into value-added speciality chemicals. Fairfax India acquired a 44.9% equity ownership in Adi Finechem in the first quarter of 2016. After the merger arrangement is effective, Fairfax India will own approximately 49% in the merged business. The proposed merger is subject to customary regulatory approvals including a court approval process and is expected to occur in the first quarter of 2017. Adi Finechem and Privi Organics would continue to operate as distinct and independent business units.
About Fairfax India
Fairfax India is an investment holding company whose objective is to achieve long-term capital appreciation, while preserving capital, by investing in public and private equity securities and debt instruments in India and Indian businesses or other businesses with customers, suppliers or business primarily conducted in, or dependent on, India.
Fairfax India Holdings CorporationJohn VarnellVice President, Corporate Affairs(416) 367-4755
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