NEW YORK (AP) ¿ Canadian insurance and asset management company Fairfax Financial Holdings Ltd. said Friday it completed a public offering to raise $1 billion as part of a plan to buy the remaining stake of Odyssey Re Holdings Corp.
The company sold about 2.9 million subordinate voting shares for $347 per share. Gross proceeds were $1 billion and the company netted $983 million after commissions and expenses.
Fairfax plans to use the proceeds to fund its offering to buy the 27.4 percent of shares Fairfax Financial does not already own for $60 per share in cash.
Stamford, Conn.-based Odyssey Re, which underwrites property and other insurance, received the unsolicited bid from Fairfax on Friday. It is reviewing the offer.If the bid does not go through, Fairfax Financial plans to use the capital to boost its cash position, increase short term investments, pay down debt and general corporate purposes. Fairfax's shares rose $2.04, or 0.6 percent, to $345.89 in afternoon trading. The stock has traded between $209 and $355.62 over the past year.