Company Overview - The Keg Royalties Income Fund is a limited purpose, open-ended trust established under Ontario law, owning trademarks and intellectual property used by Keg Restaurants Ltd. [6] - Keg Restaurants Ltd. is the leading operator and franchisor of steakhouse restaurants in Canada, with a significant presence in select U.S. markets [7] - Keg Restaurants Ltd. was recognized as the number one restaurant company to work for in Canada in Forbes' "Canada's Best Employers 2025" survey [7] Transaction Details - The Supreme Court of British Columbia approved the acquisition of all issued and outstanding units of the Fund by 1543965 B.C. Ltd., a subsidiary of Fairfax Financial Holdings Limited [1] - The transaction will become effective at 12:05 a.m. (Pacific Time) on August 13, 2025, with all conditions satisfied except those that can only be met at closing [2] - The units of the Fund are expected to be delisted from the Toronto Stock Exchange following the transaction [2] Fairfax Financial Holdings Limited - Fairfax Financial Holdings Limited is a holding company primarily engaged in property and casualty insurance and reinsurance, along with associated investment management [8]

Core Viewpoint - The Keg Royalties Income Fund has received overwhelming approval from unitholders for the acquisition by Fairfax Financial Holdings Limited's subsidiary, 1543965 B.C. Ltd, at a price of $18.60 per unit, with additional cash distributions expected [1][2]. Group 1: Transaction Details - The acquisition price is set at $18.60 per unit, payable in cash, along with a prorated monthly distribution and a special cash distribution of $0.055 per unit for the 2025 fiscal year [1]. - The transaction was approved with 99.42% of votes in favor, and 98.79% when excluding votes from Fairfax and related parties [2]. - The transaction is structured as a statutory plan of arrangement under the Business Corporations Act (British Columbia) and is expected to close around August 13, 2025, pending court approval [4]. Group 2: Company Background - The Keg Royalties Income Fund is an open-ended trust that owns trademarks and intellectual property used by Keg Restaurants Ltd, a leading steakhouse operator in Canada [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 3: Parent Company Overview - Fairfax Financial Holdings Limited is primarily engaged in property and casualty insurance and reinsurance, along with investment management through its subsidiaries [9].

Financial Performance - Net investment income reached $532 million for the second quarter of 2025[18], driven by higher assets under management and strong alternative investment returns[18, 23] - The company's combined ratio was 904%[18], resulting in underwriting income of $385 million[18] - Net operating income for the second quarter of 2025 was $734 million[21, 66], and $1010 million year-to-date[21, 66] - The company repurchased $200 million of common shares during the quarter[34] - Total Shareholder Return (TSR) was 148% annualized for the first half of 2025[19, 33, 61] Reinsurance Division - Reinsurance gross written premiums (GWP) year-to-date reached $6463 million[25], a 16% increase compared to $6385 million in the same period of 2024[25] - The attritional combined ratio for reinsurance improved to 845% year-to-date[28] Insurance Division - Insurance gross written premiums (GWP) year-to-date were $2559 million[31], a decrease of 33% on a constant dollar basis[32] - The insurance division's attritional combined ratio increased to 994% year-to-date[31] Capital and Risk Management - Shareholders' equity stood at $153 billion[33], excluding $252 million of unrealized losses on fixed maturity portfolio[33] - The company's invested assets totaled $443 billion[33, 57], with 87% in fixed income and cash/short-term securities[57]