Fairfax Financial Holdings would be raising its shareholdings in Eurobank Properties, the real estate firmn from Greece. The increase is very significant, as the jump is from 19% to 42% according to its parent firm Eurobank last Wednesday.
Both Fairfax and Eurobank are seeking to strengthen their relationship as shareholders in Eurobank Properties. There is also a move to increase its resources to make it a market leader in the country's real estate industry.
The deal would allow Eurobank Properties to proceed with a rights offering of nearly Eur200 million, pricing each share at 4.80 per share. On the other hand, Fairfax exercises its own rights and then purchase the rights from Eurobank for Eur20 million or US$26.78 million.
At the completion of the of the capital infusion, Eurobank would be holding 33.5% of the firm when all other shareholders exercise their rights under the agreement.
In a statement, Fairfax Chairman and CEO Prem Watsa said, "The Greek people have worked through tremendous hardship but we think the light is now visible at the end of the tunnel."
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