Fairfax purchases another 10% stake of Astarta

Fairfax Financial Holdings (FFH CN), a Canadian asset manager, recently acquired a 9.99% stake, or about 2.5 million shares, of Ukraine’s leading sugar producer Astarta (AST PW) at PLN 60 per share, as reported by Interfax-Ukraine on March 9. The purchased 9.99% stake belonged to Astarta board member, Valeriy Korotkov. 

Recall in early 2017, Fairfax acquired a 9.99% stake (consisting of a 1.8% stake belonging to Astarta CEO Viktor Ivanchyk, and a 8.19% stake belonging to Korotkov), or about 2.5 million shares at the same price of PLN 60, which is lower than the current price of Astarta stock of PLN 67.

Igor Zholonkivskyi:  By purchasing this 9.99% stake, Fairfax exercised its option that was stipulated by the conditions of the main deal early this year. With this option, Fairfax still has the right to purchase another 7.8% stake (currently belonging to Korotkov) after a period of four months following the completion of the main deal. 

If and when this option is exercised in full, Korotkov will have completely exited his 25.98% total stake, while Fairfax will have accumulated the second largest 27.79% stake in Astarta. Viktor Ivanchyk will remain the largest shareholder with a 36% stake.