RE:RE:RE:XX and SSC haltedWhat a strange situation. In 2019, the first tranche of Fairfax debentures financed the purchase of ASAP to build out the Logixx platform. A second tranche never materialized, which was understandable given that COVID turned the world upside down. Now, 3 years later, Fairfax converts their debs above FMV to block a sale of the whole company and instead back a sale of the Logixx division, apparently valuing the remaining business at an aggressively high multiple.
Fairfax has made enough blunders and sketchy deals that they aren't a reliable north star for others to follow. My guess is that this decision has a lot to do with loyalty/support of Mounouchos mixed with the opposite view toward the principals of SSC.
I wish Fairfax hadn't blocked the deal. I was looking for a quick exit, not a long and risky adventure in building a sub-scale security business. But from a long-term perspective I can see how they wouldn't want to partner with SSC. The SSC self-dealing is worrisome enough, and frankly the idea of SSC building a viable and competitive cybersecurity business seems pretty far-fetched. Interesting that FAX Capital also bailed on their investment. (They held nearly 10%. I wonder who bought their stake?)
Just my 2 cents.