Fairfax to reduce Northbridge ownership through share offering

Fairfax Financial Holdings Ltd. says it will reduce its stake in Northbridge Financial (which includes Fairfax’s Canadian entities) from 71% to 59% through a share offering.A syndicate of underwriters led by BMO Nesbitt Burns Inc. and Scotia Capital Inc. will sell, through an underwritten secondary offering, 6 million common shares of Northbridge at a price of $25.60 each.Net proceeds to Fairfax will be approximately $146 million. Northbridge will not receive any proceeds from the sale of the Common Shares. The transaction, subject to regulatory and stock exchange approvals, is set to close May 18.