Fairfax Africa - Initial Public Offering Update

TORONTO, ONTARIO--(Marketwired - Jan. 17, 2017) - Fairfax Financial Holdings Limited (TSX:FFH)(TSX:FFH.U) ("Fairfax Financial") and Fairfax Africa Holdings Corporation ("Fairfax Africa" or the "Company") announce that the Company has filed an amended and restated preliminary prospectus (the "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 Africa is an investment holding company. Its investment objective is to achieve long-term capital appreciation, while preserving capital, by investing in public and private equity securities and debt instruments of African businesses or other businesses with customers, suppliers or business primarily conducted in, or dependent on, Africa ("African Investments"). Generally, subject to compliance with applicable law, African Investments will be made with a view of acquiring control or significant influence positions.

Fairfax Financial has taken the initiative to create the Company. Fairfax Financial is a 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, the lesser of (i) 30,000,000 multiple voting shares and (ii) 30% of the post-offering equity capital of the Company, on a private placement basis, in exchange for cash consideration from Fairfax Financial and the contribution by Fairfax Financial of its indirect interest in AFGRI Proprietary Limited ("AFGRI"). Based in South Africa, AFGRI is a leading agricultural services and food processing company with a core focus on grain commodities. Further, cornerstone investors have committed to subscribe for, on a private placement basis, approximately US$116 million of Subordinate Voting Shares. The aggregate equity commitment by the cornerstone investors, together with Fairfax Financial, is up to approximately US$416 million.