Deals
Fairfax Agrees to Purchase Toys ‘R’ Us Canadian Unit
- C$300 million transaction is so-called stalking horse bid
- Other suitors have until Monday to submit competing offers
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Fairfax Financial Holdings Ltd., the investment firm run by billionaire Prem Watsa, signed an agreement to buy the Canadian unit of Toys “R” Us Inc. for about C$300 million ($237 million).
The so-called stalking horse bid allows other potential buyers to enter competing proposals by Monday, according to a U.S. bankruptcy court filing submitted by Toys “R” on Thursday. Fairfax would then have the option of either increasing its offer or walking away. Under the terms of the deal, Fairfax would receive a break fee of about 3 percent if another bidder is chosen.