Author Topic: Fairfax Announces Acquisition of Shares of Reitmans  (Read 11888 times)

ourkid8

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Fairfax Announces Acquisition of Shares of Reitmans
« on: December 20, 2013, 05:43:37 PM »
http://www.fairfax.ca/news/press-releases/press-release-details/2013/Fairfax-Announces-Acquisition-of-Shares-of-Reitmans/default.aspx

Fairfax Announces Acquisition of Shares of Reitmans

12/20/2013

Download this Press Release (PDF 62 KB) 
TORONTO, ONTARIO--(Marketwired - Dec. 20, 2013) - Fairfax Financial Holdings Limited ("Fairfax") (TSX:FFH)(TSX:FFH.U) announced today that it has acquired, through its subsidiaries, 2,000,000 Class A non-voting shares ("Class A Shares"), representing 3.9% of the outstanding Class A Shares of Reitmans (Canada) Limited ("Reitmans"), bringing its total holdings in the company to 7,066,100 Class A Shares or approximately 13.8% of the total Class A Shares outstanding. The shares were purchased through the facilities of the Toronto Stock Exchange at a price of $6.35 per Class A Share for investment purposes. Fairfax continually reviews its investment alternatives and may purchase additional shares of Reitmans from time to time in accordance with applicable laws.

Fairfax Financial Holdings Limited is a financial services holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and investment management.

Contact Information:

Fairfax Financial Holdings Limited
John Varnell
Vice President, Corporate Development
(416) 367-4941


Nnejad

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Re: Fairfax Announces Acquisition of Shares of Reitmans
« Reply #1 on: December 20, 2013, 06:48:53 PM »
I like it.

beerbaron

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Re: Fairfax Announces Acquisition of Shares of Reitmans
« Reply #2 on: December 21, 2013, 09:15:33 AM »
Why did they disclose it if they were under 5% ownership?

BeerBaron

ourkid8

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Re: Fairfax Announces Acquisition of Shares of Reitmans
« Reply #3 on: December 21, 2013, 10:12:19 AM »
"bringing its total holdings in the company to 7,066,100 Class A Shares or approximately 13.8% of the total Class A Shares outstanding."  Their ownership is now 13.8%.

I am not that thrilled about this investment as I do prefer they focus their attention on higher quality assets but this is probably one of the analysts picks.  Retail is a tough business that we could do well or get slaughtered  e.g. Eddie Lampert  :)  (Sorry, just joking)

Tks,
S

Why did they disclose it if they were under 5% ownership?

BeerBaron
« Last Edit: December 21, 2013, 10:43:21 AM by ourkid8 »

NormR

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Re: Fairfax Announces Acquisition of Shares of Reitmans
« Reply #4 on: December 21, 2013, 04:40:33 PM »
Humm, does iShares S&P/TSX Canadian Dividend Aristocrats Index Fund (TSX:CDZ) still hold a huge chunk of the stock? 
(It seems to have about $32 million worth based on the iShares website - or about 8% of its RET.A's market cap.)   

Since RET.A cut its dividend recently, the stock will move out of the index and then the ETF.  So, there should be a good amount of forced selling when that happens.  Anyone have an idea of when that might be? 

 

StubbleJumper

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Re: Fairfax Announces Acquisition of Shares of Reitmans
« Reply #5 on: December 21, 2013, 07:12:10 PM »
I like it.


Why do you like it?  I've always been of the view that clothing retailing is a crappy business.  I haven't paid enough attention to RET to know whether they bought a crappy business at a great price, or whether they've paid an average price for a crappy business.


SJ

mcliu

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Re: Fairfax Announces Acquisition of Shares of Reitmans
« Reply #6 on: December 21, 2013, 07:44:49 PM »
This worries me... Reitman's isn't exactly fashion forward..  ???

stylized_fact

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Re: Fairfax Announces Acquisition of Shares of Reitmans
« Reply #7 on: December 21, 2013, 08:35:45 PM »
Looks like the Canadian version of Syms/Filene's Basement.  Does anyone know about their real estate?

kirkomi

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Re: Fairfax Announces Acquisition of Shares of Reitmans
« Reply #8 on: December 21, 2013, 11:25:35 PM »
Reitmans is not a real estate play. They have a big distribution center, but the mortgage is only partially paid. Otherwise, they have 5.8M land on book and 52M in building.

They mostly have leased stores in malls. Here is a short introduction of the company. The author seems to be passing on the investment.

http://www.gurufocus.com/news/238741/reitmans-an-owner-operator-business-with-messed-up-expectations
Success is like pregnancy. Everybody congratulates you but nobody knows how many times you got fucked to achieve it.

My blog http://kirkomi.wordpress.com/

Uccmal

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Re: Fairfax Announces Acquisition of Shares of Reitmans
« Reply #9 on: December 22, 2013, 05:03:11 AM »
The clothing retailer to older ladies, heavier women, and toddlers. 

Nnejad, This is one where being on the ground and knowing the stores helps out.  Very weak investment in the retail sector.  I am disappointed again by FFHs inability to buy cash flow machines.
GARP tending toward value