BUSINESS

Fairfax India buys stake in grain handling company National Collateral

07/20/2015 09:59 EDT | Updated 07/20/2016 05:59 EDT
TORONTO - Fairfax India Holdings Corp. (TSX:FIH.U) has signed a deal to buy a 74 per cent stake in Indian grain handling company National Collateral Management Services Ltd. for approximately US$126 million.

Under the deal, National Collateral will continue to operate independently under current chief executive Sanjay Kaul and his executive team.

Fairfax India said it will also collaborate with the continuing National Collateral shareholders, including National Commodity and Derivatives Exchange Ltd. and a number of Indian banks.

The agreement, which is subject to customary closing conditions, is expected to close later this year.

Fairfax Financial Holdings Ltd. (TSX:FFH) is the controlling shareholder of Fairfax India, an investment holding company focused on India.