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  "documentTitle": "Fairfax Financial Holdings Ltd. (FFH)",
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  "authorName": "Muddy Waters Research",
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  "presentationDate": "2024-02-08 00:00:00",
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  "notes": "The slide uses forensic accounting to derive undisclosed transaction proceeds.",
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      "text": "We explain infra how Fairfax's AVLN financed this overpayment for Riverstone.",
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      "text": "Fairfax disclosed that it received consideration of $695.7 million for its 60%, which consisted of $462 million cash, shares that convert into a $200 million vendor note, and a pension asset constituting the balance.2 Subtracting the $695 million from $1.329 billion equals $633.3 million to OMERS.",
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      "text": "In August 2021, OMERS appears to have received $633.3 million for its RiverStone shares from CVC, which was a 5.6% profit. (It is unclear to us whether OMERS received dividends from RiverStone in the interim.) OMERS' sale proceeds were not expressly disclosed, so we calculate it by referencing the 2021 financials for the entity through which CVC purchased RiverStone, Gatland Holdings Ltd. (Jersey). Gatland shows total consideration paid for RiverStone of $1.329 billion.1 (We explain infra how Fairfax's AVLN financed this overpayment for Riverstone.)",
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      "text": "1 Gatland Holdings Ltd. 2021 Annual Report, Pg. 50.\n2 Fairfax Financial Holdings Annual Report 2021, Pg. 97.",
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      "text": "Squaring the Circle by Making OMERS Whole While Issuing Off-Balance Sheet Debt",
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