Prem Watsa had earned the sobriquet ‘Canadian Warren Buffett’ for his investment acumen, much like that of the famed US investor.
Now, the Chairman and Chief Executive Officer of Toronto-based Fairfax Financial Holdings is yet again in the limelight, after the India-born emerged the saviour to the beleaguered smartphone-maker BlackBerry.
$4.7-b deal
On Monday, a consortium led by Fairfax Financial offered to acquire BlackBerry in a $4.7-billion deal, a move supported by the smartphone manufacturer’s board of directors. The deal would also see BlackBerry, in which Fairfax Financial is the largest shareholder with about 10 per cent stake, going private.
Watsa, 61, had stepped down from the Waterloo-based firm’s board in mid-August, a move, widely viewed as the precursor for a takeover. He had joined BlackBerry in 2012, when Fairfax became its largest shareholder.
The billionaire was born in 1950 in Hyderabad. He completed his bachelor’s degree in chemical engineering from the Indian Institute of Technology-Madras, in 1971 and moved to London, in Southwestern Ontario, Canada, next year. Later, he enrolled for an MBA programme at the University of Western Ontario and obtained his Master’s degree in Business Administration.
From 1974 to 1983, he worked with Confederation Life Insurance Co in Toronto, serving as vice-president of Confederation Life Investment Counsel. He later moved as vice-president of GW Asset Management and in 1984, he co-founded Hamblin Watsa Investment Counsel Ltd (now wholly- owned by Fairfax).
The next year, Watsa took control of Markel Financial Holdings Ltd, a Canadian-based specialist in trucking insurance, controlled by the Virginia-based Markel family. In May 1987, he reorganised Markel Financial and renamed it Fairfax Financial Holdings, short for fair, friendly acquisitions. He owns roughly 10 per cent of Fairfax, which accounts for 99 per cent of his personal wealth. A reclusive Watsa makes an annual journey to Nebraska for Buffett’s investment carnival.
Watsa, according to reports in international media, does not expect BlackBerry to make an “overnight” turnaround. And true to his strategy of being a long-term investor he is willing to wait for another four-five years, he has been reported to have said at Fairfax’s meeting in April.
‘a quiet person’
Prem Watsa, as a student of Hyderabad Public School in Begumpet here, is remembered by several of his schoolmates who have known him as someone who always maintained a low profile.
Yashwant Ramamurthy, a student of 1968 batch in his school, remembers Watsa and his father M.C.Watsa, who served as Vice-Principal and later as Principal of HPS.
After Prem Watsa completed his schooling, he went on to pursue higher studies in India and later headed to Canada. “From them on we did not have much interaction with him. But in the past few years, we have been hearing about his achievements in Canada,” Yashwant, an architect, said.
During his school days, he was a quiet person and maintained a low profile. He was athletic and played basketball in school, he recalls.
Faiz Khan, Member of Board of Governors of the school, said, “We are happy to learn about his various achievements. In fact, we are looking forward to his visit to Hyderabad later in December for the 90th year celebrations of the school.”
(with inputs from
V. Rishikumar in Hyderabad)