Prem Watsa Boost Stake In Resolute Forest Products

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Prem Watsa, chairman and chief executive officer of Fairfax Financial Holdings Limited (PINK:FRFHF) (TSE:FFH) boosted the stake of his company in Resolute Forest Products Inc (NYSE:RFP) based on its collective filing with the Securities and Exchange Commission (SEC).

Fairfax Financial Holdings Limited (PINK:FRFHF) (TSE:FFH) and its subsidiary companies purchased 23,856,899 shares of Resolute Forest Products Inc (NYSE:RFP).

The recent purchase of the Canadian financial services holding company represents a 24.8 percent stake of the 96,208,272 outstanding shares of the Resolute Forest Products Inc (NYSE:RFP). This is a slight increase from the prior ownership of approximately 23%. Based on the collective filing of Fairfax Financial Holdings, the following subsidiary companies own certain number of shares of Resolute Forest Products:

  • TIG Insurance Company (2,207, 397 shares)
  • Fairmont Specialty Insurance (99,661 shares)
  • The North River Insurance Company (285,985 shares)
  • Seneca Insurance Company (500,00 shares)
  • Odyssey Reinsurance Company (12,354,528 shares)
  • Clearwater Insurance Company (2,031,952 shares)
  • United States Fire Insurance Company (762,861 shares)
  • Northbridge Commercial Insurance Corporation (771,881 shares)
  • Northbridge Indemnity Insurance Corporation (485,661 shares)
  • Federated Insurance Company of Canada (194,087 shares)
  • Northbridge General Insurance Corporation (1,509,395 shares)
  • Northbridge Personal Insurance Corporation (503,335 shares)
  • Zenith Insurance Company (806,855 shares)
  • Fairfax (Barbados) International Corporation (951,200 shares)
  • Wentworth Insurance Company Ltd. (951,200 shares)
  • Newline Corporate Name Limited (223,791 shares)
  • Seneca Specialty Insurance Company (150,000 shares)

Watsa intiated his stake in Resolute Forest Products Inc (NYSE:RFP) during the second quarter of 2012 by purchasing 18,460,790 shares in the company. The following quarter, he increased his holdings in the company by acquiring an additional 518,000 shares. Fairfax Financial Holdings owned 18, 978,790 shares of Resolute Forest Products with an estimated market value of $246.72 million as of September 30, 2012. The stock is the fourth largest position of Watsa, and accounts 12.51% percent in his portfolio.

Other famous large shareholders of the company include, John Paulson’s Paulson & Co. Inc., and Francis Chou’s Chou Associates Management Inc.

Fairfax Financial Holdings Limited (PINK:FRFHF) (TSE:FFH) recently announced that the sale of its interest in Cunningham Lindsey Group Limited was completed with approximately $270 million proceeds. The Canadian financial services holding company said it reinvested $34 million of the closing proceeds to retain 9 percent stake in Cunningham Lindsey Group.

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