Sixty Two Corporation Limited

[A_Hamilton]

Does anyone know if Prem is the only owner of Sixty Two, the vehicle in which he owns all of his multiple voting shares in FFH? Thanks.

[valuesource]

It's probably owned by a Corp but yes, 62 is a family holdco.  It will never sell the multivote shares of FFH.  If you recall about 7-8 years ago, the 10 vote multis were changed to 50 votes.  This required approval which they had trouble getting.

[A_Hamilton]

Definitely aware these won't be sold. There is reference in the proxy to Sixty Two having subsidiaries in which it only owns 75%, but that doesn't necessarily mean there is more than one owner of Sixty Two.

 

Relatedly, I'm curious if as FFH buys in more shares, and Prem's voting control gets closer to 50% whether there will be a change in control / premium issue that comes up. It is a very odd structure given that it will fall away 5 years after Prem exits the company / passes away (hopefully a long time from now).

[gfp]

They always say Prem "controls" Sixty Two, so I assume there is some family estate planning going on there.  That would be normal in the USA at least.

[Parsad]

Sixty-Two is majority controlled by Prem and his family.  Originally it was comprised of some other outside investors, including Robbert Hartogg...who was one of the largest investors in Fairfax for many years alongside the Watsa Family, and a mentor/advisor to Prem.  Not sure what happened after Robbert passed away, but even then Prem and his family controlled more than 60% of Sixty-Two.  Cheers!

[A_Hamilton]

28 minutes ago, Parsad said:

Sixty-Two is majority controlled by Prem and his family.  Originally it was comprised of some other outside investors, including Robbert Hartogg...who was one of the largest investors in Fairfax for many years alongside the Watsa Family, and a mentor/advisor to Prem.  Not sure what happened after Robbert passed away, but even then Prem and his family controlled more than 60% of Sixty-Two.  Cheers!

Thank you for this nugget, Sanjeev.

[SafetyinNumbers]

Does anyone know if they invest the dividends?

[A_Hamilton]

22 hours ago, A_Hamilton said:

Definitely aware these won't be sold. There is reference in the proxy to Sixty Two having subsidiaries in which it only owns 75%, but that doesn't necessarily mean there is more than one owner of Sixty Two.

 

Relatedly, I'm curious if as FFH buys in more shares, and Prem's voting control gets closer to 50% whether there will be a change in control / premium issue that comes up. It is a very odd structure given that it will fall away 5 years after Prem exits the company / passes away (hopefully a long time from now).

Answering my own question here. Would be very difficult for Prem to get control via share repurchases as he would need to control like 15% of the subordinate voting shares on top of the multiple voting shares, and he is nowhere close.