The Keg Royalties Income Fund announces Successful Closing of the Transaction with Fairfax

Core Viewpoint - The Keg Royalties Income Fund has successfully completed a transaction where 1543965 B.C. Ltd., a subsidiary of Fairfax Financial Holdings Limited, acquired all outstanding units of the Fund not owned by Fairfax [1][2]. Group 1: Transaction Details - The transaction resulted in 1543966 B.C. Ltd. becoming the sole trustee of the Fund, and the units were delisted from the Toronto Stock Exchange as of August 12, 2025 [2]. - Former holders of units are entitled to receive cash consideration of $18.60 per unit and must return the necessary documentation to Computershare Investor Services Inc. to receive their payment [3]. Group 2: Distribution and Tax Implications - Approximately 68.02% of the Fund's 2025 distributions, including the accrued distribution, are expected to exceed income subject to SIFT tax, indicating a return of capital that will reduce the adjusted cost base of unitholders' units [4]. - The remaining 31.98% of the distributions should qualify as "eligible dividends" under the Income Tax Act (Canada) [4]. Group 3: Company Background - The Keg Royalties Income Fund is an open-ended trust that owns trademarks and intellectual property used by Keg Restaurants Ltd., which is a leading operator and franchisor of steakhouses in Canada and has a presence in select U.S. markets [8]. - Keg Restaurants Ltd. has been recognized as the number one restaurant company to work for in Canada according to Forbes' "Canada's Best Employers 2025" survey [8]. Group 4: Fairfax Financial Holdings Limited - Fairfax Financial Holdings Limited is primarily engaged in property and casualty insurance and reinsurance, along with associated investment management through its subsidiaries [9].