What is everyone's understanding of FFH's ownership in the Digit assets?
Here's what I understand
-FFH owns 49% of GoDigit Infoworks Services Private Limited ("GoDigit Insurance" - not GoDigit General Insurance LTD ("Digit") which is a sub of GoDigit Insurance. Digit is the entity that went public not GoDigit Insurance.
-Upon a change in Indian Law to allow foreign ownership, FFH can own up to 68% of GoDigit Insurance.
Questions: How is the increase from 49% to 68% priced? Just a pure conversion with no cost, or per some preestablished valuation mechanism?
Also, If FFH owns 49% of this entity, could it sell down to say 45% and then top position back up to 49% and then have a contingency to only be able to own up to 64%?
-On pg 73 of its annual, FFH notes a Fair Value for GoDigit Insurance of $477.2 million and a carrying value of $146.6. This is seemingly in direct contrast to page 18 of the annual (prem's letter) which states a cost of $154 million and a 12/31/2023 of $2.265 billion. I suppose the difference is the convertible preferred?
-FFH also owns 24.2% of digit life. It isn't clear to me if this is a sub of either entity above?
Anyway, this is a homerun for FFH but I wish the annual were a bit clearer on what is owned and how any convert of compulsory prefs might work.