ourkid8 Posted April 23, 2015 Posted April 23, 2015 Another wonderful investment for Fairfax! (they hold a 78% position in the company) Ridley Inc. (RCL.TO) and a subsidiary of Alltech, Inc. ("Alltech") announced today that they have entered into a definitive agreement that provides for the acquisition of Ridley by Alltech for CAD $40.75 per share. The total consideration payable to Ridley shareholders is approximately CAD $521 million. The price of CAD $40.75 per share represents a premium of approximately 23% to the 20-day volume weighted average price of Ridley's common shares on the TSX as of April 22, 2015. The closing price of the Ridley shares on the TSX on April 22, 2015 was CAD $33.94.
Redskin212 Posted April 23, 2015 Posted April 23, 2015 Nice! Just to give a little history, Fairfax paid about $8.50/share for about 70% of Ridley right at the height of the financial crisis in September 2008. So roughly 5x their investment in 7 years. Very well done! http://www.fairfax.ca/news/press-releases/press-release-details/2008/Purchase-of-Ridley-Shares/default.aspx
Nnejad Posted April 23, 2015 Posted April 23, 2015 There were also some fairly sizable special dividends. To think I passed on this at $13...
TwoCitiesCapital Posted April 23, 2015 Posted April 23, 2015 Now, time to speculate what Prem will do with the ~$325M USD that he'll be getting out of it....
petec Posted April 27, 2015 Posted April 27, 2015 Now, time to speculate what Prem will do with the ~$325M USD that he'll be getting out of it.... Buy back some Brit from OMERS? ;)
Zorrofan Posted April 27, 2015 Posted April 27, 2015 Now, time to speculate what Prem will do with the ~$325M USD that he'll be getting out of it.... Buy back some Brit from OMERS? ;) Actually given how well the company has done, I wish he had put more money into it and expanded.....we need to stop selling off all these little gems and grow them, in BRK like fashion..... my $0.02 cheers Zorro
petec Posted April 27, 2015 Posted April 27, 2015 Now, time to speculate what Prem will do with the ~$325M USD that he'll be getting out of it.... Buy back some Brit from OMERS? ;) Actually given how well the company has done, I wish he had put more money into it and expanded.....we need to stop selling off all these little gems and grow them, in BRK like fashion..... my $0.02 cheers Zorro That assumes that incremental capital can be put to work in the business at good returns. That is not always the case.
Zorrofan Posted April 27, 2015 Posted April 27, 2015 Now, time to speculate what Prem will do with the ~$325M USD that he'll be getting out of it.... Buy back some Brit from OMERS? ;) Actually given how well the company has done, I wish he had put more money into it and expanded.....we need to stop selling off all these little gems and grow them, in BRK like fashion..... my $0.02 cheers Zorro That assumes that incremental capital can be put to work in the business at good returns. That is not always the case. You are correct, and that was my assumption. My continuing hope is that FFH continues to follow WEB into buying and holding great companies forever..... cheers Zorro
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