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OMERS backs Fairfax’s Allied World buy with $1 billion

  • Region:

    Canada

  • Sector:

    Insurance, Diversified Financials

  • Deal Size:

    $1 billion

  • Buy Side Company:

    OMERS Private Equity, Fairfax Financial Holdings
  • Sell Side Company:

    Allied World Assurance Company Holdings, AG
  • Target Company:

OMERS will invest $1 billion to support Fairfax Financial Holdings Limited's acquisition of insurer Allied World. According to terms of the deal, OMERS will indirectly acquire an approximate 21 percent stake in Allied World as a result of the transaction. On December 18, 2016, Fairfax and Allied World announced that they had entered into a definitive merger agreement pursuant to which Fairfax will make an offer to Allied World shareholders to acquire all of the outstanding registered ordinary shares of Allied World. The transaction remains subject to a number of regulatory approvals and certain Allied World shareholder approvals. Closing of the transaction is expected to occur in the second quarter of 2017. Fairfax is in ongoing discussions with several additional third parties to participate in the Allied World investment. Any such additional parties will be announced if and as negotiations are satisfactorily concluded.

Tags:

PE Deals,OMERS,Fairfax Financial Holdings Limited,Allied World,Private Equity Deals,M&A,Mergers & Acquisitions