Fairfax Financial Holdings / The Keg Royalties Income Fund

Capital West Partners (IMAP Canada) advised The Keg Royalties Income Fund (the “Fund”) on the sale to Fairfax Financial for a cash price of C$18.60 per Unit, representing a 35% premium to its 20-day volume weighted average price prior to announcement and a transaction value of C$324 million.

The Fund was established in 2002 to receive a recurring royalty linked to the revenues of Keg Restaurants. With over 100 restaurants in operation, Vancouver-based Keg Restaurants is the leading operator and franchisor of steakhouse restaurants in Canada with a substantial presence in select markets in the United States.

Fairfax Financial (TSX:FFH) is a holding company with a market capitalization of over C$50 billion, primarily engaged in property and casualty insurance and reinsurance and the associated investment management. Fairfax also has a substantial presence in the restaurant sector through its controlling interest in Recipe Unlimited Corporation, Canada’s largest full-service restaurant company, with restaurant brands including Swiss Chalet, Harvey’s, Kelseys, East Side Mario’s, New York Fries, Bier Markt, Original Joe’s, and Elephant & Castle, among others.

Capital West acted as financial advisor to the Fund and provided a fairness opinion on the transaction.