Fairfax Financial to Pay More Cash, Less Stock, for Allied World

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)

Related:

• Canada Pension Fund OMERS to Invest $1B in Fairfax’s Allied World Purchase
• Canada’s Fairfax to Buy Switzerland’s Allied World for $4.9B in Cash, Stock