Fairfax India's Mauritius sells $27M (U.S.) of Sanmar

• Divestiture of Sanmar Interest: On April 9, 2026, Fairfax India Holdings Corp. sold its entire equity interest (1,742,987 shares) in Sanmar Chemical Enterprises Ltd. for INR 2.48 billion (~US$27 million).
• Zero Remaining Stake: Following the transaction, Fairfax India holds no economic or voting interest in Sanmar Chemical Enterprises Limited.
• Proceeds Usage: Proceeds will be added to cash resources and redeployed into other investment opportunities consistent with the company's mandate for long-term capital appreciation.
• Contextual Earnings: This follows a strong FY 2025 performance where net earnings turned from a $41.2M loss in FY 2024 to $410.5M profit, driven largely by unrealized gains on private equity (BIAL) and public equities.
• Prior Divestitures: This continues a trend of asset rotation seen in Q3/FY25 with the sale of Saurashtra Freight Private Ltd. for ~$75 million to Kamigumi Co., Ltd.

• Portfolio Cleanup: The sale removes Sanmar from the portfolio, which was previously identified as having $111.9M in unrealized losses in FY 2025 results. Clearing this position eliminates a known drag on Net Asset Value (NAV) and simplifies the investment ledger.
• Capital Efficiency: While the transaction value ($27M) is modest relative to total assets (~$3.77B), it generates liquidity for reinvestment. The company has already demonstrated aggressive capital deployment, such as purchasing an additional 10% stake in BIAL for $255M.
• Earnings Stability: The move supports the FY 2025 narrative of turning around earnings through strategic asset management rather than relying solely on market fluctuations. However, it does not fundamentally alter the business model or revenue streams of an investment holding company.
• Market Expectation: Given the Q3 2025 disclosure of unrealized losses in Sanmar and the subsequent FY 2025 earnings turnaround, this divestiture was likely anticipated by the market as part of the portfolio rebalancing strategy. It is not a surprise event but rather the execution of a known plan.

• Business Model: Fairfax India Holdings Corp. is an investment holding company focused on long-term capital appreciation through public and private equity investments in India.
• Flagship Projects/Assets:
• BIAL (Private): A major private infrastructure holding with significant unrealized gains ($399.1M).
• Seven Islands (Private): Private equity investment contributing to income via dividends ($34.4M).
• Public Equities: Holdings in IIFL Finance, CSB Bank, and Fairchem Organics.
• Strategy: Active management of a diversified portfolio with a focus on high-growth Indian sectors including infrastructure, finance, and chemicals.