Prem Watsa, Fairfax Acquire Some Shares of BlackBerry Ltd (BBRY) for Investment Purposes

Prem Watsa and Fairfax Financial Holdings, reported in a filing with the Securities and Exchange Commission, that they have acquired a total of 129,000 shares of BlackBerry Ltd (NASDAQ:BBRY). Following the acquisition, the fund slightly upped its holding, which now amasses 101,983,700 shares of the company. However, the percentage remained unchanged, Fairfax still owns 17.7% of Blackberry’s common stock.

Prem Watsa

Fairfax has disclosed that the securities have been bought by 1109510 Ontario Limited, an investment holding company, also controlled by Prem Watsa. The company bought shares of BlackBerry Ltd (NASDAQ:BBRY) in the open market, the price amounting to around $7.71 apiece.

Fairfax has an agreement with BlackBerry Ltd (NASDAQ:BBRY), signed in November last year. Under the terms of the agreement, the ownership of common stock by Fairfax, and its affiliates would not exceed the 19.9% threshold and will not be smaller than 9.9% of the outstanding shares until November 2014.

In this way, the latest purchase was made for investment purposes and Fairfax intends to sell shares of BlackBerry Ltd (NASDAQ:BBRY)  in the future, in order to rebalance its holding.

Earlier Fairfax had planned to acquire BlackBerry Ltd (NASDAQ:BBRY), the parties signing a letter of intent that stated the acquisition price at $9.0 per share. However, the deal fell through later and instead, Fairfax decided to invest in the company around $1.0 billion, through a placement of  6% unsecured debentures. Last week, Fairfax pursuant to its decision, agreed to acquire $250 million principal amount of debentures.

In November, Fairfax surged its holding in the Blackberry to over 101.85 million shares, from around 51.9 million held earlier. Through the acquisition, the investor solidified its presence in the company as the largest shareholder. Another shareholder is Viking Global, managed by Andreas Halvorsen, which, however, decreased its holding by 42% over the quarter, according to the latest round of 13F filings. Viking owns 8.11 million shares of Blackberry, as disclosed in its latest 13F.

Disclosure: none

Recommended Reading:

Visium Asset Management Ups Stake in Skyrocketing Intercept Pharmaceuticals Inc (ICPT)

Ariel Investments Boosts its Exposure to Rosetta Stone Inc (RST), Spartan Motors Inc (SPAR) and Sigma Designs Inc (SIGM)

First Eagle Investment Management Slices Stake in UniFirst Corp (UNF)

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!