Fairfax stock positions

[Txvestor]

https://finance.yahoo.com/markets/stocks/articles/andrew-peller-enters-definitive-agreement-110000838.html
 

So Fairfax is buying a Winemaker Andrew Peller at an enterprise value of about 8x EBITDA. About $65M of Fairfax equity being issued for the controlling stakeholders. I assume the rest is in cash. 

May have some synergies with Recipe? 
 

I sure hope this is a better deal than buying back Fairfax shares. I think at the current prices everything needs to be evaluated from that lens. 

[SafetyinNumbers]

14 minutes ago, Txvestor said:

sure hope this is a better deal than buying back Fairfax shares. I think at the current prices everything needs to be evaluated from that lens. 

I continue to think this is a false choice. Equity investments at the insurance subsidiaries level shouldn’t have direct impact on capital allocation decisions at the holdco. They have $4b to dividend up to the holdco from the subsidiaries. My guess is they do half. They also have $400m of Poseidon at the holdco which I assume was also sold. Plus Eurolife proceeds and the 30-year debt raise means the holdco is well capitalized for buybacks even after buying out the Allied World minority interest. 

[SafetyinNumbers]

Eurobank got busy on the buyback again post dividend payout last week.

 

 

[gfp]

27 minutes ago, Txvestor said:

 

https://finance.yahoo.com/markets/stocks/articles/andrew-peller-enters-definitive-agreement-110000838.html
 

So Fairfax is buying a Winemaker Andrew Peller at an enterprise value of about 8x EBITDA. About $65M of Fairfax equity being issued for the controlling stakeholders. I assume the rest is in cash. 

May have some synergies with Recipe? 
 

I sure hope this is a better deal than buying back Fairfax shares. I think at the current prices everything needs to be evaluated from that lens. 

 

Is that right that they are issuing Fairfax stock to the controlling stakeholders?  I didn't see that part.  I read all cash deal.

 

edit:  Oh I see you are probably referencing the equity in the private winemaker the sellers are retaining.  Not the same thing as getting or issuing Fairfax shares

Edited 58 minutes ago by gfp

[LC]

29 minutes ago, SafetyinNumbers said:

I continue to think this is a false choice. Equity investments at the insurance subsidiaries level shouldn’t have direct impact on capital allocation decisions at the holdco. They have $4b to dividend up to the holdco from the subsidiaries. My guess is they do half.

 

I don't understand the reasoning here. 

 

Take this Peller deal, if the deal never materialized, wouldn't the insurance subs now have $4b + $400MM to dividend up to holdco?