Bank of Ireland (ADR) (OTCMKTS:IREBY) Traded Lower After Fairfax Financial Holdings Ltd (FRFHF) Said It Will Sell 935M shares


One of the biggest shareholders of Bank of Ireland (ADR) (OTCMKTS:IREBY), Fairfax Financial Holdings Ltd (OTCMKTS:FRFHF), will be selling nearly 3% of its stake in the bank. The Canadian insurer has probably felt that the appreciation of its investment was enough to lock profits. Fairfax Financial has been selling its stake for quite some time. As a result, shares of the company took a nose dive during Monday’s trading.

Selling Stake

The decision of Fairfax Financial Holdings Ltd (OTCMKTS:FRFHF) will result in the insurer selling about 935 million shares in Bank of Ireland (ADR) (OTCMKTS:IREBY). Shares of the company ended at 38.4 Euro cents in Dublin on Monday. This means that Fairfax Financial’s investment in the bank will fetch returns of triple what it invested nearly four years back.

Deutsche Bank has been appointed to place the shares held by Fairfax to sell in the range of 35.8 – 37.3 Euro cents a share. This means that the Canadian insurance company will get approximately Euro 349 million or $378 million from the sale of shares.

Investments

Fairfax Financial Holdings Ltd (OTCMKTS:FRFHF), led by billionaire Prem Watsa and three others, acquired 35% combined stake in Bank of Ireland (ADR) (OTCMKTS:IREBY) in 2011 as part of a bail-out package. The investment group invested close to Euro 1.1 billion then by subscribing to the shares at the rate of ten Euro cents a share. It was the oldest bank in the country and the government also contributed to the bailout package in 2009. Their investments also kept the bank out of the government control.

Watsa’s investment friend, Wilbur Ross, announced last year that he would sell his stake in the Bank of Ireland (ADR) (OTCMKTS:IREBY). He was the second biggest shareholder with a stake of 5.8%. In 2014, Prem Watsa also made a big investment in Eurobank, which was bailed out in Greece. Fairfax Financial Holdings Ltd (OTCMKTS:FRFHF) was one of the investors group who have placed more than $2 billion in the Eurobank.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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