Major FBD shareholder helps clear Fairfax loan
Insurer FBD Holdings’ original backer subscribed for €20 million worth of loan notes used in clearing a €70 million debt to Canada’s Fairfax Financial Holdings.
Farmer Business Developments, FBD’s founder and one of its biggest shareholders, confirmed that it subscribed for €20 million of the €50 million loan notes used in the insurer’s recent restructuring. This allowed FBD to buy out Fairfax’s loan, which the Canadian group could otherwise have converted to shares. Farmer Business Developments chairman Padraig Walshe called the transaction “an excellent result” for its farmer shareholders whom he noted founded FBD 50 years ago and wanted to see it stay in Irish ownership.
Mr Walshe added that crucially, the plc had avoided any dilution of its 24.6 per cent stake in FBD.