Fairfax India Holdings Corporation Files Preliminary Prospectus for Initial Public Offering of Subordinate Voting Shares

TORONTO, ONTARIO--(Marketwired - Nov. 26, 2014) -

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Fairfax Financial Holdings Limited (TSX:FFH)(TSX:FFH.U) ("Fairfax Financial") and Fairfax India Holdings Corporation ("Fairfax India" or the "Company") announce that the Company has filed a preliminary prospectus with the securities regulatory authorities of all provinces and territories in Canada and obtained a receipt therefor in respect of its initial public offering (the "Offering") of subordinate voting shares ("Subordinate Voting Shares").

Fairfax India is an investment holding company whose investment objective is to achieve long-term capital appreciation, while preserving capital, by investing in public and private equity securities and debt instruments in India and Indian businesses or other businesses with customers, suppliers or business primarily conducted in, or dependent on, India ("Indian Investments"). Generally, subject to compliance with applicable law, Indian Investments will be made with a view to acquiring control or significant influence positions.

Fairfax Financial has taken the initiative to create the Company. Fairfax Financial is a financial services holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and investment management.

In addition to the public offering of Subordinate Voting Shares, and as a condition to the closing of the Offering, the Company will issue to Fairfax Financial, either directly or to one or more of Fairfax Financial's subsidiaries, 30,000,000 multiple voting shares of the Company, on a private placement basis, for an aggregate purchase price of US$300 million. Further, cornerstone investors have committed to subscribe for, on a private placement basis, approximately US$200 million of Subordinate Voting Shares. The aggregate equity commitment by the cornerstone investors, together with Fairfax Financial, is approximately US$500 million.

"We are excited to launch, for the first time in our nearly 30-year history, a new company sponsored and promoted by Fairfax Financial - a company focused purely on the potential of India and Indian businesses," said Prem Watsa, Chairman of Fairfax Financial and Fairfax India. "We believe India will be transformed by the business-friendly government of Prime Minister Modi - and Fairfax India, with our resources and expertise in India developed over the last 15 years, will be well positioned to make excellent significant long-term investments in businesses with experienced and ethical management teams."