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Fairfax India to buy 74 pct stake in India’s NCMSL for $126 mln: Reuters

Fairfax India Holdings (FIHu.TO), a fund set up by Canadian investor Prem Watsa to target Indian assets, on Monday said it would buy a 74 percent stake in commodities storage and services firm National Collateral Management Services (NCMSL) for about US$126 million.

Reuters had reported in June that Watsa’s firm was set to take a 70 to 75 percent stake in NCMSL worth US$120 million to US$150 million.

The deal, valued at about 8 billion rupees, is expected to be completed in 2015, Fairfax said in a statement.

NCMSL, which is hoping to benefit from a boost to India’s underdeveloped agricultural storage industry under Prime Minister Narendra Modi‘s push for food security, will continue to operate independently under Chief Executive Sanjay Kaul, Fairfax said.

Hyderabad-born Watsa, whose main firm is Fairfax Financial Holdings (FFH.TO), set up Fairfax India late last year to boost the firm’s investment in India. Fairfax India went public in January this year and raised more than US$1 billion via its initial public offering.

(Reporting by Aman Shah in Mumbai; Editing by Anand Basu)

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