Leons bought the Brick!

[StubbleJumper]

Can't find a press release with the details, but here's the Globe's report:

 

http://www.theglobeandmail.com/report-on-business/leons-buys-rival-the-brick/article5185175/

 

 

Presumably this should work out well for FFH?

 

 

SJ

[Parsad]

Can't find a press release with the details, but here's the Globe's report:

 

http://www.theglobeandmail.com/report-on-business/leons-buys-rival-the-brick/article5185175/

 

 

Presumably this should work out well for FFH?

 

 

SJ

 

$700M deal...$5.40 per common, and $4.40 per warrant.  Will work out very well for Fairfax!

 

http://www.reuters.com/article/2012/11/12/thebrick-leonsfurnishing-idUSL3E8MC0Z720121112?feedType=RSS&feedName=mergersNews&rpc=43

 

Cheers!

[bonechip1]

Should work out even better for Francis Chou's RRSP fund with a 26% weighting in the fund.  I'm wishing I still held all the warrants I bought in 2009.

[nwoodman]

Another article

 

http://www.sacbee.com/2012/11/11/4977686/leons-to-acquire-the-brick.html

 

"Each of William Comrie, the founder of The Brick, Fairfax Financial Holdings Limited ("Fairfax"), Chou RRSP Fund, and Bill Gregson, the Executive Chair of The Brick's Board of Directors, who together hold approximately 66.6% of the outstanding common shares and warrants of The Brick, have entered into irrevocable voting support agreements and agreed to vote their common shares in favour of the Arrangement."

 

 

[wknecht]

To put the numbers out there:

On 9/30/12, The Brick was on Fairfax's balance sheet at $109.7 mm (with a "Fair Value" of $152.8 mm). Fairfax's 34% share of the sale price is $225.9 mm ($11.10 a share) for a pre-tax gain of $73.1 mm ($3.60 a share). (Not sure if they also own warrants, but that's a much smaller part of the deal).

 

I like the fact that after taxes, the sale occurred at a 31% premium to the reported Fair Value (and 83% above carrying value). But the numbers are too small to move the dial much.

[Yours Truly]

Good win for Hamblin Watsa and Francis Chou...

 

Per Capital IQ, it looks like Prem & Co sold out 50% of his shares in April of the Brick though