Ma­jor FBD share­holder helps clear Fair­fax loan

The Irish Times - Business - - MARKETS -

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.

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