The Canadian Press

A number of institutional investors has agreed to pay US$355 per share to buy about US$200-million worth of subordinate voting shares to be issued by Fairfax Financial Holdings Limited (TSX:FFH), the company announced Friday.

Funds raised by the offering, which is subject to several conditions, will be used for the proposed takeover of Zenith National Insurance Corp., as announced Thursday by Fairfax — a Toronto-based insurance and investment firm.

Fairfax shares closed Thursday at C$374.99 on the Toronto Stock Exchange, the equivalent of about US$360 at the prevailing exchange rate.

The company announced early Thursday that it is offering US$38 per share for the stock in California-based Zenith it doesn’t already own.

Fairfax currently holds about 8% of Zenith, which operates primarily in the field of workers’ compensation insurance, and is offering to buy out other shareholders with the unanimous support of Zenith’s directors.