TORONTO, ONTARIO--(Marketwired - Jan. 17, 2017) - Fairfax Financial Holdings Limited (TSX:FFH)(TSX:FFH.U)
("Fairfax Financial") and Fairfax Africa Holdings Corporation ("Fairfax Africa" or the
"Company") announce that the Company has filed an amended and restated preliminary prospectus (the
"preliminary prospectus") with the securities regulatory authorities of all provinces and
territories in Canada, and obtained a receipt therefor, in respect of its initial public offering (the
"Offering") of subordinate voting shares ("Subordinate Voting Shares").
Fairfax Africa is an investment holding company. Its investment objective is to achieve long-term capital
appreciation, while preserving capital, by investing in public and private equity securities and debt instruments of African
businesses or other businesses with customers, suppliers or business primarily conducted in, or dependent on, Africa
("African Investments"). Generally, subject to compliance with applicable law, African Investments will be
made with a view of acquiring control or significant influence positions.
Fairfax Financial has taken the initiative to create the Company. Fairfax Financial is a holding company
which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and investment management.
In addition to the public offering of Subordinate Voting Shares, and as a condition to the closing of the Offering,
the Company will issue to Fairfax Financial, either directly, or to one or more of Fairfax Financial's subsidiaries, the lesser
of (i) 30,000,000 multiple voting shares and (ii) 30% of the post-offering equity capital of the Company, on a private placement
basis, in exchange for cash consideration from Fairfax Financial and the contribution by Fairfax Financial of its indirect
interest in AFGRI Proprietary Limited ("AFGRI"). Based in South Africa, AFGRI is a leading agricultural
services and food processing company with a core focus on grain commodities. Further, cornerstone investors have committed
to subscribe for, on a private placement basis, approximately US$116 million of Subordinate Voting Shares. The aggregate
equity commitment by the cornerstone investors, together with Fairfax Financial, is up to approximately US$416 million.
RBC Capital Markets is acting as Global Coordinator for the Offering in Canada and the United States. RBC Capital
Markets, Citigroup and UBS are acting as Joint Global Coordinators and bookrunners for the Offering in EMEA and elsewhere outside
of Canada and the United States. RBC Capital Markets, Citigroup, UBS, BMO Capital Markets, CIBC Capital Markets, National Bank
Financial Inc., Scotiabank and TD Securities Inc. are acting as joint bookrunners for the Offering in North America, with
Canaccord Genuity Corp., Cormark Securities Inc., Desjardins Capital Markets, GMP Securities L.P., Raymond James Ltd., Dundee
Capital Partners and Manulife Securities Incorporated acting as co-managers.
The preliminary prospectus has not yet become final for the purpose of a distribution of securities to the
public. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be
any sale or acceptance of an offer to buy these securities in any jurisdiction in which such offer, solicitation or sale would be
unlawful prior to the time a receipt for the final prospectus or other authorization is obtained from the securities commission
or similar authority in such jurisdiction. This press release is not an offer of securities for sale in the United States,
and the securities may not be offered or sold in the United States absent registration or an exemption from
registration. The securities have not been and will not be registered under the United States Securities Act of 1933. A
copy of the preliminary prospectus is available on SEDAR at www.sedar.com.
Completion of the Company's initial public offering is subject to the receipt of customary approvals, including
regulatory approvals.
Forward-Looking Statements
This press release may contain forward-looking information within the meaning of applicable securities
legislation, which reflects Fairfax Financial's and the Company's current expectations regarding future
events. Forward-looking information is based on a number of assumptions and is subject to a number of risks and
uncertainties, many of which are beyond Fairfax Financial's or the Company's control, that could cause actual results and events
to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and
uncertainties include, but are not limited to, failure to complete the Offering and related transactions, and the factors
discussed under "Risk Factors" in the amended and restated preliminary prospectus of the Company dated January 17,
2017. Neither Fairfax Financial nor the Company undertake any obligation to update such forward-looking information, whether
as a result of new information, future events or otherwise, except as expressly required by applicable law.