Not for distribution to U.S. News wire services or dissemination in the U.S. VANCOUVER, British Columbia, Aug. 13, 2025 (GLOBE NEWSWIRE) -- The Keg Royalties Income Fund (the “Fund”) (TSX: KEG.UN) and 1543965 B.C. Ltd. (the “Purchaser”), a subsidiary of Fairfax Financial Holdings Limited (collectively with its affiliates, “Fairfax”) are pleased to announce the successful closing of the previously announced plan of arrangement (the “Transaction”) pursuant to which the Purchaser acquired all of the issued and ...

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].

Company Overview - The Keg Royalties Income Fund is a limited purpose, open-ended trust established under Ontario law, owning trademarks and related intellectual property used by Keg Restaurants Ltd. (KRL) [2] - KRL operates over 100 restaurants and has annual system sales exceeding $700 million, making it the leading operator and franchisor of steakhouse restaurants in Canada [3] - KRL has approximately 10,000 employees and continues to expand its restaurant system through corporate and franchised Keg steakhouses [3] Financial Performance - The Fund declared a May 2025 distribution of $0.0946 per unit, payable to unitholders of record as of May 21, 2025, with payment scheduled for May 30, 2025 [1] Industry Recognition - KRL was named the number one restaurant company to work for in Canada in Forbes' "Canada's Best Employers 2025" survey [3]