Financial Results for the Year Ended December 31, 2020

TORONTO, March 05, 2021 (GLOBE NEWSWIRE) —

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

(Be aware: All greenback quantities on this information launch are expressed in U.S. {dollars} besides as in any other case famous. The monetary outcomes are ready utilizing the popularity and measurement necessities of Worldwide Monetary Reporting Requirements, besides as in any other case famous, and are unaudited.)

Helios Fairfax Companions Company (TSX: HFPC.U) (previously Fairfax Africa Holdings Company (“Fairfax Africa”)) broadcasts fiscal 12 months 2020 internet lack of $206.6 million ($3.31 internet loss per diluted share), in comparison with fiscal 12 months 2019 internet lack of $61.2 million ($1.01 internet loss per diluted share), reflecting elevated internet realized losses on investments, transaction bills and internet overseas trade losses in 2020.

Completion of Strategic Transaction with Helios Holdings Restricted:

• On December 8, 2020, Fairfax Africa and Helios Holdings Restricted (“HHL”) introduced the completion of the strategic transaction signed on July 10, 2020 (the “Transaction”). Fairfax Africa has been renamed Helios Fairfax Companions Company (“HFP”) and can proceed to be listed on the Toronto Inventory Alternate underneath the image ‘HFPC.U’.

• The Transaction creates a number one pan-Africa centered listed funding holding firm that has the advantage of the asset administration actions of Helios Funding Companions LLP (“Helios”). This diversified funding platform combines best-in-class third celebration funding administration capabilities with the power of a everlasting capital car. HFP and Helios collectively are among the many largest Africa-focused suppliers of debt and fairness financing of African companies, via their personal fairness fund and steadiness sheet investments.

• In reference to the Transaction, HFP acquired restricted partnership pursuits in HFA Topco, L.P. (“TopCo LP”) for $275.3 million, in trade for issuing 24,632,413 subordinate voting shares and 25,452,865 a number of voting shares of HFP to HHL, representing 45.9% of the fairness and voting curiosity in HFP. HFP’s restricted partnership pursuits in TopCo LP present HFP with rights to sure carried curiosity proceeds and internet administration charges generated by the Helios.

• Because of the transaction, Helios has been appointed sole funding adviser to HFP; and Tope Lawani and Babatunde Soyoye, the co-founders and Managing Companions of Helios, have been appointed as co-chief govt officers and administrators of HFP.

Highlights for 2020 (with comparisons to 2019 besides as in any other case famous) included the next:

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• Internet lack of $206.6 million included internet realized losses on investments of $208.5 million, principally from the sale of Atlas Mara widespread shares as a part of the Transaction ($141.3 million) and write-downs of the corporate’s investments in CIG widespread shares ($46.0 million), the PGR2 Mortgage ($22.4 million), Atlas Mara Warrants ($2.3 million) and Nova Pioneer Warrants ($1.3 million); partially offset by a internet change in unrealized positive factors on funding of $30.6 million. Internet change in unrealized positive factors on investments principally mirrored reversal of prior interval losses on the corporate’s realized positions ($125.4 million), partially offset by decreases available in the market value of the corporate’s investments in AGH (oblique) widespread shares ($43.8 million), Atlas Mara convertible bonds ($17.9 million), GroCapital Holdings widespread shares ($13.8 million), Atlas Mara Facility ($12.1 million) and Philafrica widespread shares ($9.1 million).

• The corporate incurred $16.5 million of bills associated to the Transaction, primarily associated to authorized, monetary advisory and different skilled charges.

• The corporate incurred $9.5 million of common and administration bills in 2020 in comparison with $3.7 million in 2019, primarily reflecting share primarily based compensation of $5.8 million on the issuance of share choice awards to varied workers and members of Helios and its associates upon closing of the Transaction.

• On December 7, 2020, in reference to the Transaction, HFP bought its 42.3% fairness curiosity in Atlas Mara to Fairfax Monetary Holdings Restricted (“Fairfax”) for an combination buy value of $40.0 million, comprised of $20.0 million in money and $20.0 million by means of an interest-free mortgage due from Fairfax no later than three years from closing.

• In December 2020 HFP elevated its oblique fairness curiosity in AGH via the acquisition of Class A shares of AGH for buy consideration of $10,132.

• At December 31, 2020 widespread shareholders’ fairness was $599.7 million, or e-book worth per share of $5.50 with 109,118,253 shares excellent, in comparison with $518.8 million, or e-book worth per share of $8.72 with 59,496,481 share excellent, at December 31, 2019, a lower of 36.9% primarily associated to the online loss within the 12 months ended of 2020.

Subsequent to December 31, 2020:

• On January 21, 2021 HFP agreed to enter right into a portfolio insurance coverage association with Fairfax. Underneath the phrases of the transaction, Fairfax will subscribe for $100.0 million of three.0% unsecured debentures of HFP (the “Debentures”). The Debentures will mature inside three years of the date of issuance (the “Closing Date”) or, on the choice of Fairfax, on both of the primary two anniversary dates of the Closing Date. The redemption value for the Debentures shall be $100.0 million, plus any accrued and unpaid curiosity, much less the quantity, if any, by which the honest worth of HFP’s investments in AGH, Philafrica widespread shares, Philafrica Facility, and the PGR2 Mortgage (collectively, the “Reference Investments”) is decrease than $102.6 million (representing the honest worth of the Reference Investments as of June 30, 2020). As well as, Fairfax will subscribe for 3 million warrants of HFP, permitting Fairfax to buy HFP subordinate voting shares (“SVS”) at an train value of $4.90. The warrants are exercisable at any time previous to the fifth anniversary of the Closing Date. The corporate expects the portfolio insurance coverage association to shut in Q1 2021.

• Efficient March 4, 2021, Ken Costa has been appointed to the HFP board as a director and Chairman. Mr. Costa is a Associate and Co-Chairman at Alvarium Investments. Previous to becoming a member of Alvarium, Mr. Costa served as Chairman of Lazard Worldwide from 2007 till 2011 and beforehand served as Chairman of UBS Funding Financial institution for Europe, the Center East and Africa. He additionally served as Vice Chairman of Funding Banking at UBS. Mr. Costa studied Regulation and Philosophy at Witwatersrand College in South Africa and holds a Masters of Regulation Diploma and a Certificates in Theology from Queens’ School, Cambridge. Prem Watsa, in help of Mr. Costa’s appointment, has resigned as a director and Chairman with a purpose to allow that appointment.

There have been 72.1 million and 59.5 million weighted common shares excellent through the fourth quarters of 2020 and 2019 respectively. At December 31, 2020 there have been 53,665,388 subordinate voting shares and 55,452,865 a number of voting shares excellent.

Consolidated steadiness sheets, earnings and complete revenue data comply with and type a part of this information launch. Fourth quarter earnings and complete revenue data that comply with is unaudited.

In presenting the corporate’s outcomes on this information launch, administration has included e-book worth per fundamental share. E-book worth per fundamental share is calculated by the corporate as widespread shareholders’ fairness divided by the variety of widespread shares excellent.

Helios Fairfax Companions Company is an funding holding firm whose funding goal is to attain long run capital appreciation, whereas preserving capital, by investing in private and non-private fairness securities and debt devices in Africa and African companies or different companies with prospects, suppliers or enterprise primarily performed in, or depending on, Africa.

This press launch might comprise forward-looking statements inside the which means of relevant securities laws. Ahead-looking statements might relate to the corporate’s or an African Funding’s future outlook and anticipated occasions or outcomes and will embrace statements relating to the monetary place, enterprise technique, development technique, budgets, operations, monetary outcomes, taxes, dividends, plans and targets of the corporate. Significantly, statements relating to future outcomes, efficiency, achievements, prospects or alternatives of the corporate, an African Funding, or the African market are forward-looking statements. In some circumstances, forward-looking statements will be recognized by way of forward-looking terminology reminiscent of “plans”, “expects” or “doesn’t anticipate”, “is anticipated”, “funds”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “doesn’t anticipate” or “believes”, or variations of such phrases and phrases or state that sure actions, occasions or outcomes “might”, “might”, “would”, “would possibly”, “will” or “shall be taken”, “happen” or “be achieved”.

Ahead-looking statements are primarily based on our opinions and estimates as of the date of this press launch and they’re topic to recognized and unknown dangers, uncertainties, assumptions and different components which will trigger the precise outcomes, degree of exercise, efficiency or achievements to be materially completely different from these expressed or implied by such forward-looking statements, together with however not restricted to the next components: taxation of the corporate, its shareholders and subsidiaries; the COVID-19 pandemic; substantial lack of capital; geographic focus of investments; monetary market fluctuations; management or vital affect place danger; minority investments; dangers upon tendencies of investments; bridge financings; reliance on key personnel and dangers related to the Funding Advisory Settlement; impact of charges; working and monetary dangers of investments; valuation methodologies contain subjective judgments; lawsuits; overseas foreign money fluctuation; unknown deserves and dangers of future investments; illiquidity of investments; aggressive marketplace for funding alternatives; use of leverage; vital possession by sure shareholders might adversely have an effect on the market value of the subordinate voting shares; buying and selling value of subordinate voting shares relative to e-book worth per share; rising markets; volatility of African securities markets; political, financial, social and different components; pure catastrophe dangers; sovereign debt danger; financial danger; and climate danger. Further dangers and uncertainties are described within the firm’s annual data type dated March 5, 2021 which is offered on SEDAR at www.sedar.com and on the corporate’s web site at www.heliosfairfax.com. These components and assumptions will not be meant to symbolize an entire record of the components and assumptions that would have an effect on the corporate. These components and assumptions, nevertheless, needs to be thought of fastidiously.

Though the corporate has tried to establish vital components that would trigger precise outcomes to vary materially from these contained in forward-looking statements, there could also be different components that trigger outcomes to not be as anticipated, estimated or meant. There will be no assurance that such statements will show to be correct, as precise outcomes and future occasions might differ materially from these anticipated in such statements. Accordingly, readers mustn’t place undue reliance on forward-looking statements. The corporate doesn’t undertake to replace any forward-looking statements contained herein, besides as required by relevant securities legal guidelines.

Info on
CONSOLIDATED BALANCE SHEETS
as at December 31, 2020 and December 31, 2019
(US$ hundreds)

Info on
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) AND COMPREHENSIVE INCOME (LOSS)
for the three and twelve months ended December 31, 2020 and 2019
(US$ hundreds besides per share quantities)