Fairfax India Announces Election by Fairfax Financial Holdings Limited to Receive Payment of Performance Fee in Cash
December 15 2023 - 5:02PM
Fairfax India Holdings Corporation (“Fairfax India” or the
“Company”) (TSX: FIH.U) announces that pursuant to the terms of the
Investment Advisory Agreement (as defined below), Fairfax Financial
Holdings Limited (“Fairfax”) has elected to receive payment of the
performance fee payable by the Company to Fairfax for the
three-year measurement period commencing January 1, 2021 and ending
December 31, 2023, in cash. The performance fee will be paid by the
Company to Fairfax during the first six months of 2024.
At September 30, 2023, the Company had accrued a
performance fee of $82.6 million to the benefit of Fairfax. The
performance fee, if any, will only be finally determined on
December 31, 2023 at the end of the three-year measurement
period.
Information relating to the calculation and the
method and timing of payment of the performance fee are set forth
in the Amended and Restated Administration and Investment Advisory
Services Agreement among the Company, its subsidiaries, Fairfax and
the Company’s portfolio advisor (the “Investment Advisory
Agreement”), and are also described in the Company’s current annual
information form, each of which is available under the Company’s
issuer profile on SEDAR+ (www.sedarplus.com).
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.
For further
information, contact: |
John Varnell,
Vice President, Corporate Affairs |
|
(416) 367-4755 |
|
|
This press release may contain forward-looking statements within
the meaning of applicable securities legislation. Forward-looking
statements may relate to the Company’s or an Indian investment’s
future outlook and anticipated events or results and may include
statements regarding the financial position, business strategy,
growth strategy, budgets, operations, financial results, taxes,
dividends, plans and objectives of the Company. Particularly,
statements regarding future results, performance, achievements,
prospects or opportunities of the Company, an Indian investment, or
the Indian market are forward-looking statements. In some cases,
forward-looking statements can be identified by the use of
forward-looking terminology such as “plans”, “expects” or “does not
expect”, “is expected”, “budget”, “scheduled”, “estimates”,
“forecasts”, “intends”, “anticipates” or “does not anticipate” or
“believes”, or variations of such words and phrases or state that
certain actions, events or results “may”, “could”, “would”,
“might”, “will” or “will be taken”, “occur” or “be achieved”.
Forward-looking statements are based on our
opinions and estimates as of the date of this press release, and
they are subject to known and unknown risks, uncertainties,
assumptions and other factors that may cause the actual results,
level of activity, performance or achievements to be materially
different from those expressed or implied by such forward-looking
statements, including but not limited to the following factors: the
COVID-19 pandemic; the conflicts in Ukraine and Israel, and the
development of other geopolitical events and economic disruptions
worldwide; oil price risk; geographic concentration of investments;
foreign currency fluctuation; volatility of the Indian securities
markets; investments may be made in foreign private businesses
where information is unreliable or unavailable; valuation
methodologies involve subjective judgments; financial market
fluctuations; pace of completing investments; minority investments;
reliance on key personnel and risks associated with the Investment
Advisory Agreement; lawsuits; use of leverage; significant
ownership by Fairfax may adversely affect the market price of the
subordinate voting shares; weather risk; taxation risks; emerging
markets; multilateral instrument; economic risk; and trading price
of subordinate voting shares relative to book value per share risk.
Additional risks and uncertainties are described in the Company’s
annual information form dated March 10, 2023 which is available on
SEDAR+ at www.sedarplus.com and on the Company’s website at
www.fairfaxindia.ca. These factors and assumptions are not intended
to represent a complete list of the factors and assumptions that
could affect the Company. These factors and assumptions, however,
should be considered carefully.
Although the Company has attempted to identify important factors
that could cause actual results to differ materially from those
contained in forward-looking statements, there may be other factors
that cause results not to be as anticipated, estimated or intended.
There can be no assurance that such statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
statements. The Company does not undertake to update any
forward-looking statements contained herein, except as required by
applicable securities laws.
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