Fairfax Financial Holdings Ltd. on Monday said it would buy a majority stake in privately-held Keg Restaurants Ltd. Keg operates more than 100 steak house restaurants in Canada and parts of the US. The financial terms of the deal, however, was not disclosed. The acquisition is expected to close early next year, Reuters said in a report.
Meanwhile, Keg's David Aisenstat will retain a minority stake of 49% in the company. He will also remain as Keg's president and chief executive officer, the report said.
According to Reuters, Keg said the transaction would benefit The Keg Royalties Income Fund. Keg Royalties owns certain trademarks and other related intellectual property used by the company. Keg pays the fund a royalty of 4% of the company's gross sales for the use of the said trademarks.
Canadian private equity firm Fairfax is currently BlackBerry Ltd.'s largest shareholder. In September, it attempted to acquire the beleagured smartphone manufacturer. But after encountering a fund shortfall, Fairfax aborted the buyout and lead a USD1 billion debt financing for BlackBerry instead, Reuters said.
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