Fairfax (FFH) Proposes to Acquire Minority Stake in Odyssey Re (ORH) for $60 Per Share

Fairfax Financial Holdings Limited (NYSE:FFH) announced that it is proposing to acquire all of the outstanding shares of common stock of Odyssey Re Holdings Corp. (NYSE: ORH) that it does not currently own for $60 per share in cash, representing a 19.8% premium over today's closing price and a 23.2% premium over the 30-day average closing price.

The purchase price represents a multiple of 1.16x Odyssey Re's book value per share as of June 30, 2009 as compared to an average multiple of approximately 0.91x for a group of reinsurance peers as of the same date. Based on Odyssey Re's initial public offering price of $18.00 per share in June 2001, the purchase price represents a compounded annual return of 16.2%. Fairfax currently owns approximately 72.6% of all outstanding shares of common stock of Odyssey Re.