VANCOUVER — The Keg Royalties Income Fund has signed a letter of intent to be acquired by Fairfax Financial Holdings Ltd., its largest unitholder.
The proposal for $18.60 per unit in cash values the steak house fund at about $211 million.
Keg units closed at $14.22 on the Toronto Stock Exchange on Friday and were trading up more than 26 per cent after markets opened today.
Fairfax holds just over a 50 per cent stake in the fund, according to data provided by LSEG Data & Analytics.
The fund said its largest unitholder other than Fairfax, which holds a 14.6 per cent stake on an undiluted basis, has agreed to support the proposed transaction, subject to certain customary conditions.
The fund noted the letter of intent is not a definitive agreement, which remains subject to, among other things, a formal valuation and fairness opinion, various regulatory, court and stock exchange approvals, and approval at a special meeting of the unitholders.
This report by The Canadian Press was first published May 5, 2025.
Companies in this story: (TSX:KEG.UN)
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