Fairfax In­dia to In­vest $300 m in San­mar

The Economic Times - - Companies -

Bengaluru: Fairfax In­dia Holdings Corp, part of Cana­dian bil­lion­aire Prem Watsa’s Fairfax Holdings, said it would in­vest $300 mil­lion in pri­vately held In­dian petro­chem­i­cal com­pany San­mar Chem­i­cals Group through a com­bi­na­tion of equity and fixed-in­come se­cu­ri­ties.

Fairfax In­dia will have a 30% equity own­er­ship in San­mar fol­low­ing the in­vest­ment, the com­pany said on Fri­day. Reuters had ear­lier re­ported that Fairfax In­dia is close to ac­quir­ing a mi­nor­ity stake in San­mar, cit­ing sources fa­mil­iar with the mat­ter.

Fairfax In­dia will fund an ini­tial tranche of $250 mil­lion while a sec­ond tranche of $50 mil­lion will come from Fairfax Fi­nan­cial Holdings Ltd or another in­vestor, the com­pany said. The in­vest­ment in San­mar would be the lat­est in a string of Fairfax in­vest­ments in the coun­try this year. Last month, Fairfax agreed to buy a 33% equity in­ter­est in the Ban­ga­lore In­ter­na­tional Air­port from GVK Power and In­fra­struc­ture Ltd for $321 mil­lion.

In­dian-born Watsa, whose main in­vest­ment firm is Fairfax Fi­nan­cial Holdings, has pre­vi­ously said he is en­thused about In­dia's growth prospects due to Prime Min­is­ter Naren­dra Modi’s eco­nomic re­form agenda. Chen­nai-based San­mar, a fam­ily owned firm chaired by N Sankar, is one of In­dia’s largest pro­duc­ers of polyvinyl chlo­ride. The firm owns fa­cil­i­ties in In­dia and Egypt.

Prem Watsa

FILE PHOTO

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