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Fairfax India Holdings Corp T.FIH.U

Alternate Symbol(s):  FFXDF

Fairfax India Holdings Corporation is a Canada-based investment holding company. The Company's investment 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. The Company makes all or substantially all of its investments either directly or through one of its wholly owned consolidated subsidiaries based in Mauritius, FIH Mauritius Investments Ltd (FIH Mauritius), and FIH Private Investments Ltd (FIH Private). The Company, through its subsidiaries, holds investment in the Bangalore International Airport Limited, Sanmar Chemicals Group, Seven Islands Shipping Limited, Maxop Engineering Company Private Limited, Jaynix Engineering Private Limited, and more. The Company's portfolio manager is Hamblin Watsa Investment Counsel Ltd.


TSX:FIH.U - Post by User

Bullboard Posts
Post by maldororon Dec 13, 2017 7:48pm
139 Views
Post# 27152142

$1.5 billion financing over 25 months

$1.5 billion financing over 25 monthsThe short-term prospectus is open for 25 months. The financing is probably going to be a mixture of subordinated shares (1 vote) possibly with an attached warrant as a sweetener, preferred shares and debt. Currently on the books is a debt of $400 million to a Canadian bank that matures in 7 months. Assume 1/3 each that means an equity financing of USD $500 million. This is the overhang that pressures the stock down. There is no clarity when this financing will take place and this lack of clarity adds to the pressure. The fact that the co. wishes to raise $1.5 billion leads one to believe that the co. has a number of candidates in mind. All this to say that the price of FIH.U will probably not move very much in the near term.
Patience is required on this one.
Maldoror
Bullboard Posts