Fairfax Financial Holdings Ltd. says it has bought a 13.7 per cent stake in Hamilton steel producer Stelco Holdings Inc. for roughly $250 million.
The insurance-focused financial services company says it has acquired 12.2 million common shares of the Hamilton company for $20.50 each.
That price represents a 4.2 per cent premium to Stelco’s closing price of $19.67 on Friday.
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Stelco Holdings owner Bedrock Industries says it sold the shares to Fairfax and its subsidiaries via a private share purchase agreement.
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Bedrock now holds roughly 46.4 per cent of Stelco’s outstanding common shares, down from 60.1 per cent before the sale.
Stelco’s chief executive Alan Kestenbaum says Fairfax’s investment “represents a vote of confidence in our future.”
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