Fairfax India Holdings Corporation through its wholly-owned subsidiaries, has recently agreed to invest USD 300M into the Sanmar Chemicals Group, through a combination of equity and fixed income securities. Fairfax India will acquire a 30% equity ownership in Sanmar, as a result of this investment. Fairfax India will fund an initial tranche of USD 250M upon the closing of the transaction, and the second tranche of USD 50M will be funded within 90 days thereafter by Fairfax Financial Holdings Limited. The first tranche is expected to be completed in Q2 of 2016 upon the satisfaction of certain conditions precedent, including the establishment of a term loan facility for USD 280M between TCI Sanmar Chemicals Egypt, the Egyptian subsidiary of Sanmar, and its lenders.
Prem Watsa, Chairman of Fairfax India, said, "We look forward to our partnership with this distinguished South India group which, in addition to its technical and business expertise, is well known for its integrity and corporate social responsibility."
N. Sankar, welcoming this investment, said, "We are excited at having Fairfax as a long-term partner. Sanmar will benefit by having a financially strong shareholder with a global footprint. We look forward to the expansion of our capacities in Egypt and India creating value for all stakeholders.