KEG Royalties Income Fund T.KEG.UN

Will Fairfax also buy KEG.UN ?

[pierrelebel]

VAUGHAN, ON, Aug. 9, 2022 /CNW/ - Recipe Unlimited Corporation ("Recipe" or the "Company") (TSE: RECP) announced today that, based on the unanimous recommendation of a special committee of independent directors (the "Special Committee") of its board of directors (the "Board"), it has entered into a letter of intent with Hamblin Watsa Investment Counsel Ltd., investment manager on behalf of certain affiliates of Fairfax Financial Holdings Limited (collectively, "Fairfax"), in respect of a transaction (the "Proposed Transaction") whereby a newly-formed wholly-owned subsidiary (the "Purchaser") of the buying group comprised of certain affiliates of Fairfax (collectively, the "Buying Group") will acquire all of the multiple voting shares ("MVS") and subordinate voting shares ("SVS", and together with "MVS", the "Shares") in the capital of the Company, other than those Shares owned by Fairfax or its affiliates and a maximum of 4,000,000 MVS owned by Cara Holdings Limited ("CHL"), at a purchase price of $20.73 per Share (the "Offer Price"), payable in cash.

The Offer Price represents a 53.4% premium to the closing price on August 8, 2022, and a 59.2% and 58.1% premium to the 30- and 60-trading-day volume weighted average price, respectively, as of the end of trading on August 8, 2022.

==================================================

It would make sense to me for Fairfax to also buy the royalty trust unit.

$20.00 maybe???

[alder]

Thanks, Pierre, I was having difficulty figuring out why it was up. Alder

[pierrelebel]

It is now four months since Fairfax offered to buy Recipe Unlimited (which includes the Keg) Nothing has been mentionned yet about acquiring the Keg Royalties Income Fund. Now that the transaction has closed, it would make sense for Fairfax to acquire the Fund. I still expect to see $20.00 early 2023.  In the meantime we get our 7% yield - it beats the bank!

[babedinkleman]

This post has been removed in accordance with Community Policy