Helios Holdings Ltd. and Fairfax Africa Holdings Corp., which are based on Africa, decided to combine their complementary companies.
Under the terms of the agreement, Helios Holdings Group must contribute all economic sources of its management and performance fees from existing and potential assets to gain a 45.9 percent equity and voting interest in the pro forma share capital of Fairfax Africa. The merged group will hold voting control of Fairfax Financial Holdings Ltd.
Upon closing the transaction, which is scheduled to take place in the third quarter, Fairfax Africa will change its name to Helios Fairfax Partners Corp. and the firm will continue to be listed on the Toronto Stock Exchange.
One of the closing conditions of the transaction is that Fairfax Financial must obtain a US$ 40 million equity interest of Fairfax Africa in Atlas Mara Ltd.
The co-founders and managing partners of Helios Investment Partners LLP, Tope Lawani and Babatunde Soyoye will become co-CEOs of Helios Fairfax Partners. In addition, Michael Wilkerson, CEO of Fairfax Africa, will become the Executive Vice President of Helios Fairfax Partners.