Toronto-based insurance group Fairfax Financial Holdings Ltd. said it would increase the cash component of its offer to buy Allied World Assurance Co. Holdings AG by $18 per share.
The increase in the cash component of the offer would reduce the stock consideration of the total deal value, Fairfax said.
The company said on Friday [March 10] it was able to increase the cash component because of a $500 million investment from Alberta Investment Management Corp.
When the announcement to buy Swiss insurer Allied World was made in December, Fairfax had said it would pay $54 per share — $10 in cash and $44 in Fairfax stock — for a total of $4.9 billion.
Fairfax on Friday said it would raise the cash consideration of the offer to $28 per share, including a $5 special dividend.
(Reporting by Vishaka George in Bengaluru)
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