Fairfax Financial Holdings Ltd. Friday proposed to acquire all of the outstanding shares of common stock of Odyssey Re Holdings Corp.

The Toronto-based financial services holding company is offering US$60 a share, for the 27% of Connecticut-based Odyssey Re Holdings Corp. that it no longer owns, in an attempt to take the business private.

The offer price represents a premium of 19.8% over Odyssey’s closing price Friday and a 23.2% premium over the 30-day average closing price.

Fairfax currently owns approximately 72.6% of all outstanding shares of common stock of Odyssey Re.

“Fairfax intends to issue new equity under its existing shelf prospectus, the proceeds of which would be used to fully fund the proposed acquisition of Odyssey Re shares,” the company said in a release.

“Our offering price, which is well above any price at which Odyssey Re shares have ever traded, represents an attractive opportunity for Odyssey Re shareholders to obtain liquidity at a significant premium to the market price and to the valuation of Odyssey Re’s peer group,” said Prem Watsa, chairman and CEO of Fairfax.

“Following completion of the transaction, Odyssey Re would have the benefit of the strong financial position and financial flexibility of Fairfax as its business continues to move forward,” Watsa added.

Following completion of the proposed offer, there would be no changes in Odyssey Re’s strategic or operating philosophy, Fairfax said.

“Under the leadership of Andy Bernard, president and CEO, Odyssey Re will continue to operate its business exactly as it has always been run, on an independent and decentralized basis,” Fairfax noted.

IE