MISSISSAUGA, Ont. — Following a contentious week of negotiations, Prime announced that it has terminated its acquisition agreement with Cara Operations Ltd., and entered into an agreement with Fairfax Financial Holdings Inc.
Fairfax raised the stakes in a Prime deal, overbidding Cara Operations by $12 million. Cara originally offered $59 million in a friendly takeover bid, while Fairfax offered $71 million.
Cara argued the Fairfax offer didn’t treat shareholders equally and a number of senior Prime executives would have to invest in the company following the takeover.
Canadian Business reports that, in the terms of the new deal, Fairfax will pay approximately $2.2 million to Prime for expenses, including a termination fee payable to Cara.
The deal is subject to a number of conditions, including approval of the court and the “majority of the minority” shareholders.
Prime operates a network of casual-dining restaurants and pubs, including East Side Mario’s, Casey’s, Fionn MacCool’s, D’sArcy McGee’s, Paddy Flaherty’s, Tir nan Og and Bier Markt.