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FINWIRES

Fairfax Financial Holdings Announces Completion of Kennedy Wilson Take-Private Transaction

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Fairfax Financial Holdings (FFH.TO) on Tuesday said the acquisition of Kennedy-Wilson Holdings by an entity affiliated with a consortium led by William McMorrow, chief executive officer of Kennedy Wilson, certain other senior executives of the company (collectively, the KW Management Group), and certain affiliates of Fairfax for US$10.90 per share in cash pursuant to a merger agreement has been completed.

"The KW Management Group, led by William McMorrow, has effective and operational control of and continues to lead and have ultimate responsibility for Kennedy Wilson and its subsidiaries while Fairfax holds a majority of the economic interest," said Fairfax.

In addition, an affiliate of the consortium entered into a term loan credit agreement pursuant to which it obtained a three-year US$1.3 billion term loan facility, it stated.

"In connection with the Credit Agreement, Fairfax agreed to provide a stand-by guarantee pursuant to which Fairfax would agree, upon the occurrence of certain events under the Credit Agreement, to guarantee in favour of the lenders the obligations of the Borrower under the Credit Agreement," added Fairfax.

The company's shares were last seen up C$8.70 at C$2,277.23 on the Toronto Stock Exchange.

Price: $2277.23, Change: $+8.69, Percent Change: +0.38%

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