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Fairfax agrees to acquire majority stake in The Keg


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http://finance.yahoo.com/news/fairfax-agrees-acquire-majority-stake-150321025.html

 

(Reuters) - Fairfax Financial Holdings Ltd has agreed to acquire a majority interest in privately held Keg Restaurants Ltd (KRL), which owns over 100 steak house restaurants in Canada and parts of the United States.

 

The terms of the deal, which is expected to close early next year, were not disclosed.

 

Canadian restaurateur David Aisenstat will retain a minority 49 percent stake in the Keg and will remain head of operations, as president and chief executive.

 

KRL, in a statement on Monday, said the transaction will benefit The Keg Royalties Income Fund, which owns certain trademarks and other related intellectual property used by KRL. In exchange for use of those trademarks, KRL pays the fund a royalty of 4 percent of gross sales of Keg restaurants, KRL said.

 

"Fairfax is a well-known and proven investor in the Canadian market. With the addition of Fairfax to the Keg team, The Keg is well positioned and has a solid foundation for continued growth, which will benefit the fund and its unitholders," Kip Woodward, chairman of the fund, said in a statement.

 

Toronto-based Fairfax, headed by Canadian value investment guru Prem Watsa, is the largest shareholder of BlackBerry Ltd. The firm has been in the spotlight this year as, in September, it made a tentative bid to take the struggling smartphone maker private. However that deal was aborted earlier this month, and Fairfax opted to lead a $1 billion debt financing deal to help BlackBerry turn around its fortunes.

 

 

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Is this going to result in Prem getting involved to the point where he's in the kitchen cooking steaks every night?  ;)

 

 

 

 

 

 

-I ate at the Keg in Denver a few times when I lived thereand thought it was pretty good. Don't know a lot about the company though.

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Nice!  Great company with excellent recurring cash flows.  They didn't get it cheap I bet you...but probably a better investment than the alternatives at the moment.  For those complaining about Fairfax buying garbage restaurant companies...well they listened. 

 

Aisenstat also owns the Hy's Steak Houses, which I doubt were part of the deal..as well as Vancouver's Gotham Steakhouse (overrated).  But the Keg is a great chain...my whole family are regulars!  Prem, you better have a $25 Keg gift card for shareholder's this year.  My whole family is coming for this AGM!  ;D  Cheers!

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Oh great.  Now Prem will be directly contributing to the obesity epidemic.  Can't this guy do anything right?  First Blackberry, now red meat.  Where does it end?

 

Not really true.  WEB is contributing to the obesity epidemic with his KO investment and as more studies come out and more people (as well as governments) recognize this, I think you will start seeing the first signs of evaporation in the coke moat in the coming decade.  I'm not worried about the future of steak houses.

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Oh great.  Now Prem will be directly contributing to the obesity epidemic.  Can't this guy do anything right?  First Blackberry, now red meat.  Where does it end?

 

Not really true.  WEB is contributing to the obesity epidemic with his KO investment and as more studies come out and more people (as well as governments) recognize this, I think you will start seeing the first signs of evaporation in the coke moat in the coming decade.  I'm not worried about the future of steak houses.

 

Well, then he will be part of the cause of the greenhouse gas problem.  I mean, come on, Prem, do something right!

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Oh great.  Now Prem will be directly contributing to the obesity epidemic.  Can't this guy do anything right?  First Blackberry, now red meat.  Where does it end?

 

LOL!  Don't forget the Teuscher Chocolates in William Ashley and East Side Marios.  Cheers!

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They are finally moving up to higher quality businesses!  Let's hope the trend continues and BB was the reason. 

 

Tks,

S

 

Nice!  Great company with excellent recurring cash flows.  They didn't get it cheap I bet you...but probably a better investment than the alternatives at the moment.  For those complaining about Fairfax buying garbage restaurant companies...well they listened. 

 

Aisenstat also owns the Hy's Steak Houses, which I doubt were part of the deal..as well as Vancouver's Gotham Steakhouse (overrated).  But the Keg is a great chain...my whole family are regulars!  Prem, you better have a $25 Keg gift card for shareholder's this year.  My whole family is coming for this AGM!  ;D  Cheers!

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Oh great.  Now Prem will be directly contributing to the obesity epidemic.  Can't this guy do anything right?  First Blackberry, now red meat.  Where does it end?

 

Not really true.  WEB is contributing to the obesity epidemic with his KO investment and as more studies come out and more people (as well as governments) recognize this, I think you will start seeing the first signs of evaporation in the coke moat in the coming decade.  I'm not worried about the future of steak houses.

 

Well, then he will be part of the cause of the greenhouse gas problem.  I mean, come on, Prem, do something right!

 

Kraven, I hate to be the one to break this to you... but you and Mrs. Kraven, and the little kravens are part of the greenhouse gas problem, especially after those bean burritos....

 

I think this is a good acquisition, finally.  Although I never eat there - too pricey - the parking lots are always full.  Did I say it was too pricey....  Kind of like Sees Candy.

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Oh great.  Now Prem will be directly contributing to the obesity epidemic.  Can't this guy do anything right?  First Blackberry, now red meat.  Where does it end?

 

Not really true.  WEB is contributing to the obesity epidemic with his KO investment and as more studies come out and more people (as well as governments) recognize this, I think you will start seeing the first signs of evaporation in the coke moat in the coming decade.  I'm not worried about the future of steak houses.

 

Well, then he will be part of the cause of the greenhouse gas problem.  I mean, come on, Prem, do something right!

 

Kraven, I hate to be the one to break this to you... but you and Mrs. Kraven, and the little kravens are part of the greenhouse gas problem, especially after those bean burritos....

 

I think this is a good acquisition, finally.  Although I never eat there - too pricey - the parking lots are always full.  Did I say it was too pricey....  Kind of like Sees Candy.

 

Hmmm.  So is the problem Mexican food then?  We don't eat it much.  Maybe the problem is the hot air coming from Rob Ford?

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You know a thread has gone off the rails when Rob Ford is brought in. ;)

Oh great.  Now Prem will be directly contributing to the obesity epidemic.  Can't this guy do anything right?  First Blackberry, now red meat.  Where does it end?

 

Not really true.  WEB is contributing to the obesity epidemic with his KO investment and as more studies come out and more people (as well as governments) recognize this, I think you will start seeing the first signs of evaporation in the coke moat in the coming decade.  I'm not worried about the future of steak houses.

 

Well, then he will be part of the cause of the greenhouse gas problem.  I mean, come on, Prem, do something right!

 

Kraven, I hate to be the one to break this to you... but you and Mrs. Kraven, and the little kravens are part of the greenhouse gas problem, especially after those bean burritos....

 

I think this is a good acquisition, finally.  Although I never eat there - too pricey - the parking lots are always full.  Did I say it was too pricey....  Kind of like Sees Candy.

 

Hmmm.  So is the problem Mexican food then?  We don't eat it much.  Maybe the problem is the hot air coming from Rob Ford?

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