Fairfax Financial Holdings Ltd. has reduced its holdings in BlackBerry Ltd. by 5.2 million shares. In a quarterly filing with the U.S. regulator in February, the insurance and investment firm said it holds nearly 46.7 million shares or a roughly 8.9 per cent stake in the smartphone maker, down from nearly 51.9 million shares it held previously…
According to data compiled by Thomson Reuters, Fairfax is the second-largest shareholder in BlackBerry behind Primecap Management, which has a 10.4 per cent stake or nearly 54.9 million shares.
Fairfax led an investment group that injected $1 billion into BlackBerry last fall in a convertible debt financing deal, including US$250 million from Fairfax. The company later doubled its investment with the purchase of an additional US$250 million earlier this year in BlackBerry convertible debt, which pays six per cent interest annually but can be converted into BlackBerry shares if they rise above US$10.
BlackBerry has been making significant changes to its operations under the leadership of executive chairman and chief executive John Chen. However, these changes are intended to effectuate long-term change and its most recent financial results posted a first-quarter loss of US$423 million. The loss was smaller than expected though.