Fairfax Financial Holdings Limited announced that it has agreed to acquire approximately 25 percent of the issued and outstanding shares of Thai reinsurer, Thai Reinsurance Public Company Limited, for approximately US$70 million.
“As part of the purchase, Fairfax will have the right to nominate two members to the Board of Directors of Thai Re and will also assist Thai Re with its investment portfolio,” said the bulletin.
It also noted that the purchase is subject to the approval of the shareholders of Thai Re, as well as the “successful conclusion of Thai Re’s previously announced rights offering and the receipt of all requisite regulatory approvals.”
Assuming that these contingencies are met, the transaction is expected to close in the second quarter of 2012.
“We are pleased to be partnering with the leading reinsurer in Thailand,” stated Prem Watsa, Fairfax Chairman and CEO. T”Surachai Sirivallop, Chief Executive Officer of Thai Re, has an outstanding track record of underwriting profitability since he began managing the company 22 years ago. We look forward to working with Surachai and his excellent management team to further develop their business.”
Thai Re is a professional reinsurer with over Baht 2 billion [$63.478 million] in equity providing reinsurance coverage for property, casualty, engineering, marine, and life customers. Thai Re also offers risk management consulting, technical assistance, marketing support, education and information services. The company is headquartered in Bangkok, Thailand and has been operating in the reinsurance market since 1979.
Source: Fairfax Financial Holdings
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