Contest: Which Fairfax Private Companies Are Going Public?

[Daphne]

The Globe and Mail has confirmed a report last week by IP industry journal IAM that BB-T +2.06%increase

recently began shopping the majority of its 38,000 patents to interested parties. Tech+IP Capital, LLC, a U.S. investment banking firm, is handling the sale for BlackBerry.

 

A source familiar with the situation told The Globe the company isn’t certain what price it will get, but it’s believed the portfolio could be worth more than US$450-million - a significant size for a deal in the global patent trade, but a fraction of the US$4.5-billion a consortium led by Apple Inc. Apple Inc. paid in 2011 for a trove of 6,000 Nortel Networks patents. The Globe is not identifying the source as they are not authorized to speak publicly on the matter.

 

[Xerxes]

If true this could mean that one of Blackberry revenue drivers will take a hit as they have been collecting royalties on some of them.

[bluedevil]

Pethealth.

Bought for 100m; sells for around 240m.

 

Is this a prediction or have you seen some news?

 

No news -- a total guess.

In response to the call for predictions, I was just thinking about the one company they sold -- Davos -- and how that was a business that benefited from the pandemic, unlike most of their businesses.  I was trying to think of another business that was helped by the pandemic, rather than hurt, and Pethealth is -- sadly! -- the only one I could think of.  I am assuming it is done ok given the surge of interest in pets recently.  Just hard for me to see them selling off many of the other businesses - such as retail - given how they must have been impacted by the virus.

 

 

 

[Xerxes]

Bluedevil

 

I think that is an excellent guess and reasoning.

[ourkid8]

AGT Foods eyeing return to public markets: CEO

 

https://www.bnnbloomberg.ca/agt-foods-eyeing-return-to-public-markets-ceo-1.1533015

[Viking]

AGT Foods eyeing return to public markets: CEO

 

https://www.bnnbloomberg.ca/agt-foods-eyeing-return-to-public-markets-ceo-1.1533015

 

Good interview. Seems like a pretty bright guy. Lots going on with this company. Thanks fo posting the 10 minute interview.

[Xerxes]

A good interview with Al-Katib from the pre-Covid days.

 

[wondering]

Maybe Farmers Edge

 

Maybe there is for my vote for Farmers Edge.

 

https://www.theglobeandmail.com/business/technology/article-six-canadian-tech-companies-eyeing-ipos-amid-investor-craze-for/

 

"Frothy markets and a recent frenzy for software-focused businesses have convinced more Canadian technology companies to consider going public, setting the stage for a potential surge of initial public offerings that could eclipse last fall’s rush. At least six firms have recently lined up investment bankers to explore IPOs, potentially by the spring, The Globe and Mail has learned.

 

Farmers Edge Inc., a Winnipeg-based agricultural technology provider controlled by Fairfax Financial Holdings Ltd., is set to file a prospectus with regulators for a deal underwritten by National Bank Financial.....

 

....Farmers Edge, meanwhile, was an early Canadian agricultural-technology leader, using data science and AI-powered software to help farmers improve yields. It raised private capital in the mid-2010s from Silicon Valley-based Kleiner Perkins Caulfied & Byers and Toronto-based Osmington Inc., which is controlled by David Thomson. (Woodbridge Co. Ltd., the Thomson family holding company, owns The Globe and Mail.)

 

Fairfax bought Kleiner Perkins’s stake in 2016 and has since gained majority control of the company. Fairfax recently reported a loss of $21.8-million in the nine months ended Sept. 30 for its stake in Farmers Edge."

 

 

[Daphne]

What about Boatrocker? Media and entertainment sector is on fire and this company has been growing by leaps and bounds.

[Pedro]

Sanjeev do we have a winner here?  They sold some of the Brit does that count as a W?

 

 

"Im going out to left field - My vote goes to a minority interest in one of the larger insurers who have consistently done well YOY. "

[bearprowler6]

What about Boatrocker? Media and entertainment sector is on fire and this company has been growing by leaps and bounds.

 

https://www.theglobeandmail.com/business/article-boat-rocker-media-producer-of-orphan-black-files-for-175-million-ipo/

 

Post IPO----Fairfax will end up with 44% of a company valued between $175-$205 million. Revenue growth has been impressive however bottom line rivals that of Farmers Edge. I do like however that the funds raised from the IPO will be used to pay off the bank line with remainder being available to fund future growth.

 

From the article:

 

“Boat Rocker has constructed the platform for a next generation entertainment company, not out of bricks and mortar, but imagination, creativity and integrity.”

 

Boat Rocker will use capital from the IPO to fully repay the $91-million owed from a $120-million credit facility from Bank of Montreal. The rest will go toward developing shows and acquiring intellectual property that can be developed for the screen. The company forecasts $700-million in revenue in 2021.

 

COVID-19 affected production on several Boat Rocker shows in 2020. In the nine months ended Sept. 30, it had a net loss of $43.8-million on $171.2-million in revenue. The company was also in breach of a covenant on its BMO credit facility because its earnings were below a target. The company received government assistance in 2020, accessing $13.9-million from the Canada Emergency Wage Subsidy.

 

In 2019, Boat Rocker generated revenue of $244-million and saw a net loss of $19.5-million.