Fairfax Financial Holdings Ltd. and Sagard Capital Partners are considering various proposals related to Performance Sports Group Ltd. (PSG) including a restructuring, refinancing, buying the company’s debt or other “strategic alternatives.”
In a statement, Sagard Capital said it and Fairfax has entered into a confidentiality agreement with PSG over such proposals. Sagard said it has conducted, and continues to conduct, a due diligence review of PSG and its subsidiaries. Sagard presently expects to continue discussions with additional potential sources of financing and/or co-investors for any potential transaction, and with PSG related to a possible potential transaction.
Sagard Capital and Fairfax have discussed acting together in a potential transaction, but the two have not yet entered into any agreements, term sheets or other arrangements among themselves with respect to any joint activity. Sagard continues to beneficially own and control an aggregate of 7.72 million shares of PSG, representing approximately 16.9 percent of the issued and outstanding shares. Fairfax does not have ownership or control over any PSG shares.
A subsidiary of Power Corporation of Canada, Sagard Capital is relying on Part 5 of National Instrument 62-103 in respect of aggregation relief relating to any securities that may be held by Great-West Lifeco Inc. and its subsidiaries, IGM Financial Inc. and its subsidiaries, and any investment fund managed by entities within the Power Corporation of Canada group of companies.
Sagard is the closely held New York-based investment firm run by Paul Desmarais III of Power Corp.
As reported, Brookfield Asset Management Inc., Canada’s largest alternative-asset manager, has also looked at the sports firm, the owner of the Bauer and Easton brands. Sources told Bloomberg that Brookfield was set to submit a formal takeover bid. Brookfield is the second-largest shareholder of PSG after Sagard Capital.
