Fairfax Bets on Metlen’s Future with Convertible Bond Deal

13:38 24/3/2025 - Πηγή: Dikaiologitika

The agreement is being closely watched by markets, as it underscores Fairfax’s view that Metlen is positioned for significant growth.

Fairfax Financial Holdings, the Canadian investment group led by Prem Watsa, has deepened its commitment to Greek industrial and energy

company Metlen through a €110 million investment in a convertible bond. The move is seen as a strong vote of confidence in Metlen’s long-term prospects as the company prepares for a high-profile listing on the London Stock Exchange and eyes entry into the FTSE 25 index.

Under the terms of the deal, the bond gives Fairfax the option to acquire 2,750,000 treasury shares of Metlen at a price of €40 per share within two years. If exercised, this would represent 1.92% of Metlen’s share capital and raise Fairfax’s total stake to 8.35%. The price offered is slightly above Metlen’s current market price of €39.50, a signal that the institutional investor views the company’s current valuation as attractive and sees strong upside potential.

Prem Watsa, chairman and CEO of Fairfax, expressed enthusiasm about the expanded investment, saying, “We are excited to further increase our investment in Metlen. The company has an outstanding track record, and we look forward to working closely with Evangelos Mytilineos and his team to support its long-term growth.”

Evangelos Mytilineos, chairman and CEO of Metlen, welcomed the deal, highlighting Fairfax’s role as a consistent and trusted long-term partner. “Fairfax’s increased investment fills us with joy and excitement. Their continued belief in our company’s future and prospects is deeply appreciated. Our rapid growth since 2012, when Fairfax first invested in the then Mytilineos, has gone hand in hand with their increasing stake. This new commitment is very welcome.”

The agreement is being closely watched by markets, as it underscores Fairfax’s view that Metlen is positioned for significant growth. The fact that the bond relates to existing treasury shares and not new stock means the deal does not dilute the holdings of current shareholders—an important consideration for long-term investors. Additionally, should Metlen’s share price rise in the wake of its planned London listing and potential inclusion in a major index, Fairfax’s option to purchase shares at €40 could deliver substantial gains.

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Fairfax Bets, Metlen’s Future,Convertible Bond Deal