Fairfax in talks to invest about $300 mln in India's Sanmar-sources

By Devidutta Tripathy and Krishna N. Das
MUMBAI, April 8 (Reuters) - Fairfax India Holdings Corp
FIHu.TO is close to acquiring a minority stake in
privately-held Indian petrochemical company Sanmar Chemicals
Group via a roughly $300 million investment in the company,
according to two sources familiar with the matter.
The investment in Sanmar, may be paired with a smaller cash
infusion from Fairfax India's larger sister entity, Fairfax
Financial Holdings Ltd FFH.TO . That would give the two
entities - both chaired by Canadian billionaire Prem Watsa - a
roughly 30 percent stake in Sanmar, said the two sources, who
declined to be named as the talks are private.
The sources said Fairfax may consider investing in both the
equity and debt of Sanmar.
Fairfax India and Fairfax Financial declined to comment on
the matter. A spokesman for Chennai-based Sanmar was also not
immediately able to provide a comment on the matter.
The Times of India, in February, reported that Fairfax was
in talks to buy a stake in Sanmar.
Indian-born Watsa, whose main investment firm is Fairfax
Financial Holdings, set up Fairfax India in 2014 to hone in on
investments in India, where he sees strong growth opportunities.
Fairfax India went public in early 2015 and raised more than $1
billion via its initial public offering.
Watsa, who met with Indian Prime Minister Narendra Modi last
year, has previously stated he is enthused about India's growth
prospects due to Modi's economic reform agenda.
The investment in Sanmar would be the latest in a string of
Fairfax investments in the country this year. Last month, it
agreed to buy a 33 percent equity interest in the Bangalore
International Airport from GVK Power and Infrastructure Ltd
GVKP.NS for $321 million.
In February, it acquired a 45 percent stake in ADI Finechem
ADIF.NS , a small Ahmedabad-based specialty chemical company
for $19 million. This followed its acquisition last August of a
majority stake in India's largest non-government grain handling
company, National Collateral Management Services Ltd for about
$126 million.
Sanmar, a family-owned firm chaired by N. Sankar, is one of
India's largest producers of polyvinyl chloride (PVC). The firm,
which owns manufacturing facilities in India and Egypt, is also
a manufacturer of caustic soda and other specialty chemicals.