decline in Toronto stocks; Fairfax Financial shares jump on subsidiary buyout and sale of interest

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By Adriano Marchese


Canadian stocks were down moderately at noon on Wednesday as most sectors offset gains in non-energy minerals and energy stocks. The shares of Fairfax Financial Holdings Ltd. surged after announcing it would sell a roughly 10% stake in a US-based subsidiary to fund a $ 1 billion buyout.

The S & P / TSX Composite Index of Canada lost 0.29% to 2,654.12 and the blue chip S & P / TSX 60 index lost 0.38% to 1,302.03.

The shares of Fairfax Financial Holdings Ltd. rose 7.7% to C $ 585.04 after announcing that it had agreed to sell two tranches of nearly 5% interest in Odyssey Group Holdings Inc. for $ 900 million, which it will spend on repurchase and cancellation of up to $ 1 billion of its own shares.


Other market drivers:

The shares of Leon’s Furniture Ltd. rose 0.8% to C $ 24.46 after announcing it would buy up to C $ 200 million of its own stock, the equivalent of about US $ 159.2 million.

The shares of Goodfood Market Corp. fell to C $ 5.25, falling 27% after posting a loss in the fourth quarter of fiscal 2021 as the effects of reopening and seasonality weighed on revenues.

Lithium Americas Corp. fell 3.2% to C $ 5.69 after announcing it would buy Millennial Lithium Corp. for a total consideration of approximately US $ 400 million in cash and shares.


Write to Adriano Marchese at adriano.marchese@wsj.com



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