By Rita Trichur
Canadian insurance giant Fairfax Financial Holdings Ltd. said
late Monday that it has struck a deal to acquire U.K. specialty
insurer Brit PLC in a transaction worth $1.88 billion.
Toronto-based Fairfax said it plans to purchase all of Brit's
shares outstanding. Under the terms of the deal, Fairfax is
offering 305 pence in cash per Brit share--an 11.2% premium over
the stock's Monday closing price.
Fairfax, which expects the acquisition to add to its gross
revenue a share and investments a share, said it has secured
irrevocable agreements to acquire about 73% of Brit's outstanding
float.
"Brit has an outstanding track record over the last 10 years and
will continue to operate on a decentralized basis once owned by
Fairfax," Fairfax Chairman and Chief Executive Prem Watsa said in a
statement.
"With the acquisition of Brit, Fairfax will have a significant
top five position at Lloyd's of London," he added.
Write to Rita Trichur at rita.trichur@wsj.com
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