Fairfax Agrees to Sell a Portion of Its Interest in Poseidon Corp.

Executive Summary

• Fairfax Financial Holdings Ltd. agreed to sell 67,618,981 Poseidon Corp. common shares for approximately US $1.91 billion.
• The transaction represents about 23.2% of Poseidon’s outstanding common equity; Fairfax will retain ~22.1% common equity plus 12 million Series J preferred shares in Atlas Corp. (Poseidon subsidiary).
• Closings are expected in Q2 2026, subject to customary regulatory approvals and third‑party consents.

Key Details

• Shares Sold: 67,618,981 Poseidon common shares at US $28.30 per share.
• Aggregate Proceeds: Approximately US $1.91 billion.
• Buyer Structure:
• Existing Poseidon shareholder – 37,820,167 shares.
• New strategic investor #1 – 9,932,937 shares.
• New strategic investor #2 – 19,865,877 shares.
• Post‑Transaction Ownership:
• Fairfax to retain ~22.1% of Poseidon’s common shares.
• Retention of 12,000,000 Series J preferred shares in Atlas Corp. (Poseidon’s wholly‑owned subsidiary).
• Closing Timeline: Each Sale Transaction expected to close in the second quarter of 2026, pending customary closing conditions, regulatory approvals, and third‑party consents.
• Accounting Treatment: Fairfax will continue to account for its remaining Poseidon investment using the equity method.
• Strategic Rationale (CEO Quote): Prem Watsa highlighted that the sale reflects Poseidon’s strong performance since being taken private in 2023 and positions the company with new strategic partners, including Ocean Network Express, to further grow as a leading independent maritime asset owner/operator.

Notable Quotes

“We are very pleased to have agreed to sell approximately half of our position in Poseidon at a price that we think reflects the achievements and success of the company since we helped take it private in 2023… We are happy to retain a significant equity stake in the company as it brings on new strategic partners, joining Ocean Network Express, to help continue to grow Poseidon as a world‑leading independent maritime asset owner and operator.” – Prem Watsa, Chairman & CEO, Fairfax Financial Holdings Ltd.