Mega Brands sells 19 per cent stake

Mega Brands has sold a 19.7 per cent stake to Fairfax Financial Holdings as part of its ongoing recovery plan.
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Fairfax said it has acquired nearly 64.7m shares of Mega Brands and the same number of warrants, with each warrant entitling the holder to buy one share at a price of 50 cents at any time until March 30th, 2015.

Some 51.6m of the shares and warrants were acquired in a private placement and 13.1m shares and warrants were acquired in exchange for the cancellation of $64m convertible debentures.

Under the recapitalisation plan, Mega Brands will receive a total of $218.1m, including $121m from the sale of equity to current major shareholders and new investors.

Mega Brands has said the plan will restructure its balance sheet without affecting its employees or customers.

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