Canadian wine producer Andrew Peller sells to Fairfax Financial at a 41% premium to its June 12 closing share price.
Fairfax Financial will acquire Canadian wine producer Andrew Peller in an all-cash transaction valuing the company at C$579m ($413.8m). The deal offers C$8 per Class A share and C$12 per Class B share, representing premiums of 41% and 70%, respectively, over recent trading levels.
Andrew Peller’s shares closed at C$5.67 on June 12, with the Fairfax bid marking a 42% premium over the 20-day average for Class A shares. The transaction follows a strategic review by the company, which cited Fairfax’s long-term investment approach as a key factor in the deal.
The agreement has the backing of Andrew Peller’s largest shareholders, including Peller Family Enterprises and CEO John Peller, who will roll over equity into Fairfax. The deal is expected to provide stability and growth opportunities for the wine producer.