Prem Watsa’s Fairfax India to invest $300 mln in Sanmar Chemicals

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Updated: April 8, 2016 7:31:33 PM

Fairfax India Holdings Corp, part of Canadian billionaire Prem Watsa's Fairfax Holdings, said it would invest $300 million in privately held Indian petrochemical company Sanmar Chemicals Group through combination of equity and fixed-income securities.

Fairfax India, Fairfax India Holdings Corp, Canadian billionaire, Fairfax India Prem Watsa, Prem Watsa, Prem Watsa Fairfax Holdings, Sanmar ChemicalsIndian-born Watsa, whose main investment firm is Fairfax Financial Holdings, has previously said he is enthused about India?s growth prospects due to Prime Minister Narendra Modi?s economic reform agenda.

Fairfax India Holdings Corp, part of Canadian billionaire Prem Watsa’s Fairfax Holdings, said it would invest $300 million in privately held Indian petrochemical company Sanmar Chemicals Group through combination of equity and fixed-income securities.

Fairfax India will have a 30 percent equity ownership in Sanmar following the investment, the company said on Friday.

Reuters had earlier reported that Fairfax India is close to acquiring a minority stake in Sanmar, citing sources familiar with the matter.

Fairfax India will fund an initial tranche of $250 million while a second tranche of $50 million will come from Fairfax Financial Holdings Ltd or another investor, the company said.

The investment in Sanmar would be the latest in a string of Fairfax investments in the country this year.

Last month, Fairfax agreed to buy a 33 percent equity interest in the Bangalore International Airport from GVK Power and Infrastructure Ltd for $321 million.

Indian-born Watsa, whose main investment firm is Fairfax Financial Holdings, has previously said he is enthused about India’s growth prospects due to Prime Minister Narendra Modi’s economic reform agenda.

Chennai-based Sanmar, a family owned firm chaired by N Sankar, is one of India’s largest producers of polyvinyl chloride. The firm owns manufacturing facilities in India and Egypt.

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