Fairfax India to invest $300MM in petrochemicals producer Sanmar

April 8 (Reuters) -- Fairfax India Holdings Corp., part of Canadian billionaire Prem Watsa's Fairfax Holdings, said it would invest $300 million in privately-held Indian petrochemical company Sanmar Chemicals Group through a combination of equity and fixed-income securities.

Fairfax India will have a 30% equity ownership in Sanmar following the investment, the company said on Friday.

Reuters had earlier reported that Fairfax India is close to acquiring a minority stake in Sanmar, citing sources familiar with the matter.

Fairfax India will fund an initial tranche of $250 million while a second tranche of $50 million will come from Fairfax Financial Holdings Ltd. or another investor, the company said.

The investment in Sanmar would be the latest in a string of Fairfax investments in the country this year.

Last month, Fairfax agreed to buy a 33% equity interest in the Bangalore International Airport from GVK Power and Infrastructure Ltd for $321 million.

Indian-born Watsa, whose main investment firm is Fairfax Financial Holdings, has previously said he is enthused about India's growth prospects due to Prime Minister Narendra Modi's economic reform agenda.

Chennai-based Sanmar, a family-owned firm chaired by N Sankar, is one of India's largest producers of polyvinyl chloride (PVC). The firm owns manufacturing facilities in India and Egypt.