Fairfax buys stake in steelmaker Stelco for $250 mln: Reuters

Fairfax Financial Holdings, owned by Canadian billionaire Prem Watsa, said on Monday it bought an almost 14 percent stake in steelmaker Stelco Holdings for $250.1 million (US$189.9 million).

It acquired more than 12 million shares of Stelco at $20.50 per share, a premium of 4.2 per cent to its close on Friday.

The insurer bought the stake in Stelco from Bedrock Industries, a unit of U.S. private equity firm Lindsay Goldberg LLC, which owned 60.1 percent in the company before the sale.

Bedrock still holds about 47 percent stake in Stelco.

Update: Last year, Hamilton, Ontario-based Stelco went public on the Toronto Stock Exchange, raising $230 million.

(Reporting By Aparajita Saxena in Bengaluru; Editing by Shinjini Ganguli)

(This story has been edited by Kirk Falconer, editor of PE HUB Canada)