On June 17, 2025, The Keg Royalties Income Fund (TSX: KEG.UN) announced it has entered into an arrangement agreement with 1543965 B.C. Ltd., an affiliate of Fairfax Financial Holdings Limited, to acquire all outstanding units of the Fund not already owned by Fairfax. The purchase price is $18.60 per unit in cash, representing a 30.8% premium to the Fund’s closing unit price on May 2, 2025, and a 34.7% premium to the 20-day volume-weighted average price as of that date. The transaction is structured as a statutory plan of arrangement under the Business Corporations Act (British Columbia) and is not subject to a financing condition.

Unitholders will continue to receive monthly cash distributions of $0.0946 per unit until closing, along with a prorated special distribution of $0.055 per unit for 2025. The board of trustees, after receiving independent financial and legal advice, unanimously recommended the transaction as fair and in the best interests of unitholders (excluding Fairfax). Fort Capital Partners provided a formal valuation and a fairness opinion, while Capital West Partners also issued a fairness opinion.

Completion is subject to customary approvals, including two-thirds unitholder approval (excluding Fairfax’s 33.92% interest), court approval, and regulatory clearance under the Competition Act (Canada). Trustees and key unitholders holding approximately 14.7% of the units (9.9% on a fully diluted basis) have agreed to vote in favour. Capital West Partners and Lawson Lundell LLP advised the Trustees, and Torys LLP advised Fairfax.