LONDON, UK,
March 30, 2022 /CNW/ -
Atlas Corp. ("Atlas" or the "Company") today announced that Fairfax
Financial Holdings Limited ("Fairfax"), a leading financial holding
company, has notified the Company of its intention to exercise
warrants (the "Warrants") to purchase 25,000,000 common shares of
Atlas. The Company intends to use the proceeds to repay outstanding
debt and for other general corporate purposes.
The Warrants, which were originally issued on July 16, 2018, have an exercise price of
$8.05 per common share for an
aggregate exercise price of $201,250,000. Following the exercise of the
Warrants, Fairfax and its affiliates will hold in aggregate
124,805,753 common shares, representing 45.1% of the issued and
outstanding common shares of Atlas (increased from 39.6%). Atlas
and Fairfax expect the Warrants to be exercised and the associated
common shares of Atlas to be issued by April
11, 2022. Following the exercise of the Warrants, Fairfax
will have 6,000,000 warrants remaining which were issued in
relation to transactions completed in 2021.
Prem Watsa, Chairman and CEO of
Fairfax, commented, "David Sokol and
Bing Chen have done an outstanding job since they took over Atlas
four years ago. Atlas has huge momentum and we, at Fairfax,
are excited to continue to support them by exercising the Warrants.
Fairfax remains a committed long-term partner of Atlas and looks
forward to its growth in the future."
Bing Chen, President and CEO of Atlas, commented, "Fairfax's
incremental investment in Atlas validates the quality growth we
have achieved by focusing on operational excellence, disciplined
capital allocation, and creative customer partnerships. In addition
to increasing Atlas' liquidity profile and simplifying our capital
structure, Fairfax's decision to exercise the Warrants early
further reinforces their support of and confidence in Atlas'
continued growth and success. We look forward to continuing to
deliver value for all our shareholders."
About Atlas
Atlas is a leading global asset management company,
differentiated by its position as a best-in-class owner and
operator with a focus on disciplined capital deployment to create
sustainable shareholder value. We target long-term, risk-adjusted
returns across high-quality infrastructure assets in the maritime
sector, energy sector and other infrastructure verticals. For more
information visit atlascorporation.com.
About Fairfax
Fairfax is a holding company which, through its subsidiaries, is
primarily engaged in property and casualty insurance and
reinsurance and the associated investment management.
Cautionary Note Regarding Forward-Looking Statements
This release contains certain forward-looking statements (as
such term is defined in Section 21E of the Securities Exchange Act
of 1934, as amended) concerning future events. Statements that are
predictive in nature, that depend upon or refer to future events or
conditions, or that include words such as "expects", "intends",
"plans", "believes", "estimates", "will", "may", "potential",
"continued", and similar expressions are forward-looking
statements. These forward-looking statements reflect management's
current expectations only as of the date of this release and
include statements regarding the exercise of the Warrants, the
future prospects of Atlas, the relationship with Fairfax, and
Fairfax's intentions with respect to its holdings in Atlas. As a
result, you are cautioned not to rely on any forward-looking
statements. Although these statements are based upon assumptions we
believe to be reasonable based upon available information, they are
subject to risks and uncertainties. These risks and uncertainties
include market conditions and other factors detailed from time to
time in our periodic reports and filings with the Securities and
Exchange Commission, including Atlas's Annual Report on Form 20-F
for the year ended December 31, 2021,
filed with the SEC on March 24, 2022.
We expressly disclaim any obligation to update or revise any of
these forward-looking statements, whether because of future events,
new information, a change in our views or expectations, or
otherwise. We make no prediction or statement about the performance
of any of our securities.
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SOURCE Atlas Corp.