Source: The Canadian Press

Fairfax Financial Holdings Ltd. (TSX:FFH) said Monday it has signed a deal to acquire a 39.2% stake in Gulf Insurance Co. for US$208.6 million from Kuwaiti Projects Co.

Following the deal, KIPCO will remain the largest shareholder of GIC with approximately 43%. Fairfax will own approximately 41%.

“The transaction reflects both the value of the GIC business and the network that GIC has built in seven countries across the Middle East and North Africa, as well as Fairfax’s confidence in the long-term growth potential of the region,” the companies said in a statement.

KIPCO has significant ownership interests in a portfolio of over 60 companies operating across 26 countries.

Fairfax is a property and casualty insurance and reinsurance holding company with operations around the world.

Shares in the company closed up $8.53 at $409.73 on the Toronto Stock Exchange on Monday.