<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13G
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. 2)*
Emco Limited
- -------------------------------------------------------------------------------
(Name of Issuer)
Common Shares
- -------------------------------------------------------------------------------
(Title of Class of Securities)
290839109
- -------------------------------------------------------------------------------
(CUSIP Number)
*The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which would
alter the disclosures provided in a prior cover page.
The information required in the remainder of this cover page shall not
be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 ("Act") or otherwise subject to the liabilities of that section of
the Act but shall be subject to all other provisions of the Act.
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CUSIP NO. 290839109
--------------------
- -------------------------------------------------------------------------------
1) Names of Reporting Persons S.S. or I.R.S. Identification Nos.
of Above Persons
V. Prem Watsa
-------------------------------------------------------------
(No S.S. or I.R.S. Identification Nos.)
- ----------------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group
(See Instructions)
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) X . . . . . . . . . . . . . . . . . . . . . . . . . . .
- --------------------------------------------------------------------------------
3) SEC Use Only . . . . . . . . . . . . . . . . . . . . . . . . . .
- --------------------------------------------------------------------------------
4) Citizenship or Place of Organization Canada
---------------------------
- --------------------------------------------------------------------------------
Number of Shares (5) Sole Voting Power -0-
Beneficially Owned -----------------------------
by Each Reporting ------------------------------------------------------
Person With
(6) Shared Voting Power 1,587,029
---------------------------
-------------------------------------------------------
(7) Sole Dispositive Power -0-
-------------------------
-------------------------------------------------------
(8) Shared Dispositive Power 1,587,029
-------------------------
- --------------------------------------------------------------------------------
9) Aggregate Amount Beneficially Owned by Each Reporting Person
1,587,029
- --------------------------------------------------------------------------------
10) Check if the Aggregate Amount in Row (9) Excludes Certain
Shares (See Instructions) . . . . . . . . . . . . . . . . . . . .
- --------------------------------------------------------------------------------
11) Percent of Class Represented by Amount in Row 9 6.8%
-----------------
- --------------------------------------------------------------------------------
12) Type of Reporting Person (See Instructions) IN (Canadian)
---------------------
- --------------------------------------------------------------------------------
2(1)
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CUSIP NO. 290839109
------------------
- --------------------------------------------------------------------------------
1) Names of Reporting Persons S.S. or I.R.S. Identification Nos.
of Above Persons
The Sixty Two Investment Company Limited
- --------------------------------------------------------------------------------
(No S.S. or I.R.S. Identification Nos.)
- --------------------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group
(See Instructions)
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) X . . . . . . . . . . . . . . . . . . . . . . . . . .
- --------------------------------------------------------------------------------
3) SEC Use Only . . . . . . . . . . . . . . . . . . . . . . . . . .
- --------------------------------------------------------------------------------
4) Citizenship or Place of Organization British Columbia, Canada
----------------------------
- --------------------------------------------------------------------------------
Number of Shares (5) Sole Voting Power -0-
Beneficially Owned ---------------------
by Each Reporting --------------------------------------------
Person With
(6) Shared Voting Power 1,587,029
------------------
(7) Sole Dispositive Power -0-
---------------
(8) Shared Dispositive Power 1,587,029
--------------
- --------------------------------------------------------------------------------
9) Aggregate Amount Beneficially Owned by Each Reporting
Person 1,587,029
- --------------------------------------------------------------------------------
10) Check if the Aggregate Amount in Row (9) Excludes Certain
Shares (See Instructions) . . . . . . . . . . . . . . . . . . . .
- --------------------------------------------------------------------------------
11) Percent of Class Represented by Amount in Row 9 6.8%
-----------------
- -------------------------------------------------------------------------------
12) Type of Reporting Person (See Instructions) CO (Canadian)
----------------------
- --------------------------------------------------------------------------------
2(2)
<PAGE> 4
CUSIP NO. 290839109
------------------
- --------------------------------------------------------------------------------
1) Names of Reporting Persons S.S. or I.R.S. Identification Nos. of
Above Persons
810679 Ontario Ltd.
----------------------------------------------------------------
(No S.S. or I.R.S. Identification Nos.)
- --------------------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group
(See Instructions)
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) X . . . . . . . . . . . . . . . . . . . . . . . . . . .
- --------------------------------------------------------------------------------
3) SEC Use Only . . . . . . . . . . . . . . . . . . . . . . . . . .
- --------------------------------------------------------------------------------
4) Citizenship or Place of Organization Ontario, Canada
----------------------------
- --------------------------------------------------------------------------------
Number of Shares (5) Sole Voting Power -0-
Beneficially Owned -------------------
by Each Reporting --------------------------------------------
Person With
(6) Shared Voting Power 1,587,029
-----------------
--------------------------------------------
(7) Sole Dispositive Power -0-
--------------
--------------------------------------------
(8) Shared Dispositive Power 1,587,029
-----------
- --------------------------------------------------------------------------------
9) Aggregate Amount Beneficially Owned by Each Reporting Person
1,587,029
- --------------------------------------------------------------------------------
10) Check if the Aggregate Amount in Row (9) Excludes Certain
Shares (See Instructions) . . . . . . . . . . . . . . . . . . . .
- --------------------------------------------------------------------------------
11) Percent of Class Represented by Amount in Row 9 6.8%
-----------------
- --------------------------------------------------------------------------------
12) Type of Reporting Person (See Instructions) CO (Canadian)
----------------------
- --------------------------------------------------------------------------------
2(3)
<PAGE> 5
CUSIP NO. 290839109
-------------------
- --------------------------------------------------------------------------------
1) Names of Reporting Persons S.S. or I.R.S. Identification Nos.
of Above Persons
Fairfax Financial Holdings Limited
-----------------------------------------------------------------
(No S.S. or I.R.S. Identification Nos.)
- --------------------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group
(See Instructions)
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) X . . . . . . . . . . . . . . . . . . . . . . . . . . .
- --------------------------------------------------------------------------------
3) SEC Use Only . . . . . . . . . . . . . . . . . . . . . . . . . . .
- --------------------------------------------------------------------------------
4) Citizenship or Place of Organization Canada
-----------------------------
- --------------------------------------------------------------------------------
Number of Shares (5) Sole Voting Power -0-
Beneficially Owned -------------------------------
by Each Reporting ------------------------------------------------------
Person With
(6) Shared Voting Power 1,587,029
-----------------------------
------------------------------------------------------
(7) Sole Dispositive Power -0-
---------------------------
-------------------------------------------------------
(8) Shared Dispositive Power 1,587,029
-------------------------
- --------------------------------------------------------------------------------
9) Aggregate Amount Beneficially Owned by Each Reporting Person
1,587,029
- --------------------------------------------------------------------------------
10) Check if the Aggregate Amount in Row (9) Excludes Certain
Shares (See Instructions) . . . . . . . . . . . . . . . . . . . .
- --------------------------------------------------------------------------------
11) Percent of Class Represented by Amount in Row 9 6.8%
------------------
- --------------------------------------------------------------------------------
12) Type of Reporting Person (See Instructions) HC (Canadian)
----------------------
- --------------------------------------------------------------------------------
2(4)
<PAGE> 6
CUSIP NO. 290839109
------------------
- --------------------------------------------------------------------------------
1) Names of Reporting Persons S.S. or I.R.S. Identification Nos. of
Above Persons
Hamblin Watsa Investment Counsel Ltd.
-----------------------------------------------------------------
(No S.S. or I.R.S. Identification Nos.)
- --------------------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group
(See Instructions)
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) X . . . . . . . . . . . . . . . . . . . . . . . . . . .
- --------------------------------------------------------------------------------
3) SEC Use Only . . . . . . . . . . . . . . . . . . . . . . . . . . .
- --------------------------------------------------------------------------------
4) Citizenship or Place of Organization Canada
- --------------------------------------------------------------------------------
Number of Shares (5) Sole Voting Power -0-
Beneficially Owned --------------------------
by Each Reporting ---------------------------------------------------
Person With
(6) Shared Voting Power 1,587,029
------------------------
---------------------------------------------------
(7) Sole Dispositive Power -0-
----------------------
----------------------------------------------------
(8) Shared Dispositive Power 1,587,029
--------------------
- --------------------------------------------------------------------------------
9) Aggregate Amount Beneficially Owned by Each Reporting Person
1,587,029
- --------------------------------------------------------------------------------
10) Check if the Aggregate Amount in Row (9) Excludes Certain
Shares (See Instructions) . . . . . . . . . . . . . . . . . . . .
- --------------------------------------------------------------------------------
11) Percent of Class Represented by Amount in Row 9 6.8%
-----------------
- --------------------------------------------------------------------------------
12) Type of Reporting Person (See Instructions)
CO and IA (Canadian)
------------------------
- -------------------------------------------------------------------------------
2(5)
<PAGE> 7
CUSIP NO. 290839109
------------------
- --------------------------------------------------------------------------------
1) Names of Reporting Persons S.S. or I.R.S. Identification Nos. of
Above Persons
1109519 Ontario Limited
---------------------------------------------------------------
(No S.S. or I.R.S. Identification Nos.)
- --------------------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group
(See Instructions)
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) X . . . . . . . . . . . . . . . . . . . . . . . . . . .
- --------------------------------------------------------------------------------
3) SEC Use Only . . . . . . . . . . . . . . . . . . . . . . . . . . .
- --------------------------------------------------------------------------------
4) Citizenship or Place of Organization Canada
---------------------------
- --------------------------------------------------------------------------------
Number of Shares (5) Sole Voting Power -0-
Beneficially Owned --------------------------
by Each Reporting ---------------------------------------------------
Person With
(6) Shared Voting Power 1,587,029
------------------------
---------------------------------------------------
(7) Sole Dispositive Power -0-
----------------------
----------------------------------------------------
(8) Shared Dispositive Power 1,587,029
--------------------
- --------------------------------------------------------------------------------
9) Aggregate Amount Beneficially Owned by Each Reporting Person
1,587,029
- --------------------------------------------------------------------------------
10) Check if the Aggregate Amount in Row (9) Excludes Certain
Shares (See Instructions) . . . . . . . . . . . . . . . . . . . .
- --------------------------------------------------------------------------------
11) Percent of Class Represented by Amount in Row 9 6.8%
-----------------
- --------------------------------------------------------------------------------
12) Type of Reporting Person (See Instructions)
CO (Canadian)
------------------------
- -------------------------------------------------------------------------------
<PAGE> 8
ITEM 1(a)
Name of Issuer: Emco Limited
----------------------------------------------------------------
ITEM 1(b)
Address of Issuer's Principal Executive Offices: 620 Richmond Street,
P.O. Box 5252, London,
Ontario, Canada N6A 5I9
- -------------------------------------------------------------------------------
ITEM 2(a)
Names of Persons Filing: V. Prem Watsa, 1109519 Ontario Limited, The Sixty
Two Investment Company Limited, 810679 Ontario
Ltd., Fairfax Financial Holdings Limited and
Hamblin Watsa Investment Counsel Ltd. (See Note
1 below)
- -------------------------------------------------------------------------------
ITEM 2(b)
Address of Principal Business Office or, if none, Residence:
95 Wellington Street West, Suite 802, Toronto, Ontario, Canada M5J 2N7
- -------------------------------------------------------------------------------
ITEM 2(c)
Citizenship: Canada
--------------------------------------------------------------------
ITEM 2(d)
Title of Class of Securities: Common Shares
---------------------------------------------------
ITEM 2(e)
CUSIP Number: 290839109
------------------------------------------------------------------
ITEM 3
If this statement is filed pursuant to Rule 13d-1(b), check whether the person
filing is a:
(a) [ ] Broker or Dealer registered under Section 15 of the Act
(b) [ ] Bank as defined in Section 3(a)(6) of the Act
(c) [ ] Insurance Company as defined in Section 3(a)(19) of the Act
(d) [ ] Investment Company registered under Section 8 of the Investment
Company Act
- --------
Note 1: Mr. Watsa, 1109519 Ontario Limited, The Sixty Two Investment
Company Limited, 810679 Ontario Ltd. and Hamblin Watsa
Investment Counsel Ltd. are filing this Schedule 13G pursuant
to a no-action letter dated June 8, 1994 from the Commission
to Fairfax Financial Holdings Limited.
3
<PAGE> 9
(e) [ ] Investment Adviser registered under Section 203 of the
Investment Advisers Act of 1940
(f) [ ] Employee Benefit Plan, Pension Fund which is subject to the
provisions of the Employee Retirement Income Security Act of
1974 or Endowment Fund; see Section 240.13d-1(b)(1)(ii)(F)
(g) [ X ] Parent Holding Company, in accordance with Section
240.13d-1(b)(ii)(G) (See Note 2 below)
(h) [ ] Group, in accordance with Section 240.13d-1(b)(1)(ii)(H)
ITEM 4
Ownership.
- ---------
If the percent of the class owned, as of December 31 of the year covered by
the statement, or as of the last day of any month described in Rule 13d-1(b)(2),
if applicable, exceeds five percent, provide the following information as of
that date and identify those shares which there is a right to acquire.
(a) Amount Beneficially Owned:
1,587,029
--------------------------------------------------------------
(b) Percent of Class:
6.8%
-------------------------------------------------------------
(c) Number of shares as to which such person has:
<TABLE>
<S> <C> <C>
(i) sole power to vote or to direct the vote -0-
---------------------------
(ii) shared power to vote or to direct the vote 1,587,029
--------------------------
(iii) sole power to dispose or to direct the disposition -0-
------------------
(iv) shared power to dispose or to direct the disposition of 1,587,029
-------------
</TABLE>
ITEM 5
Ownership of Five Percent or Less of a Class.
- ---------------------------------------------
If this statement is being filed to report the fact that as of the date
hereof the reporting person has ceased to be the beneficial owner of more than
five percent of the class of securities, check the following [ ].
- --------
Note 2: The filing of this Schedule 13G and the statements therein shall
not be construed as an admission that Mr. Watsa, 1109519 Ontario
Limited, The Sixty Two Investment Company Limited, 810679 Ontario
Ltd. or Fairfax Financial Holdings Limited are for the purposes
of Sections 13(d) or 13(g) of the Securities Exchange Act of
1934 the beneficial owners of the Issuer's common shares or have
any pecuniary interest therein.
4
<PAGE> 10
ITEM 6
Ownership of More than Five Percent on Behalf of Another Person.
- ----------------------------------------------------------------
Not applicable.
ITEM 7
Identification Classification of Subsidiary Which Acquired the Security Being
- -----------------------------------------------------------------------------
Reported on By the Parent Holding Company.
- -----------------------------------------
Mr. Watsa, directly, and indirectly through 1109519 Ontario Limited,
The Sixty Two Investment Company Limited and 810679 Ontario Ltd., owns the
controlling equity voting interest of Fairfax Financial Holdings Limited
("Fairfax"). Fairfax is filing this Schedule 13G on behalf of seven of
Fairfax's subsidiary corporations, (1) Lombard General Insurance Company of
Canada (formerly The Continental Insurance Company of Canada Inc.) ("Lombard")
which owns 92,500 common shares of the Issuer, (2) Lombard Insurance Company
("Lombard Insurance") which owns 146,500 common shares of the Issuer, (3)
Commonwealth Insurance Company ("Commonwealth") which owns 118,400 common
shares directly and 5,405 common shares indirectly through ownership of the
Issuer's convertible debentures, (4) Markel Insurance Company of Canada
("Markel") which owns 64,865 common shares indirectly through ownership of the
Issuer's convertible debentures, (5) Odyssey Reinsurance Corporation (formerly
Skandia America Reinsurance Corporation) ("Odyssey") which owns 477,400 common
shares of the Issuer, (6) Federated Life Insurance Company of Canada
("Federated") which owns 59,459 common shares of the Issuer indirectly through
ownership of the Issuer's convertible debentures and (7) Hamblin Watsa
Investment Counsel Ltd., a Canadian investment adviser ("Hamblin"). Hamblin,
through its investment advisory agreements with clients outside the Fairfax
group, as well as with Lombard, Lombard Insurance, Commonwealth, Markel,
Odyssey and Federated, shares the power to vote, and the power to dispose of,
1,587,029 common shares of the Issuer. Exhibit A attached hereto states the
identity and Item 3 classification of Lombard, Lombard Insurance, Commonwealth,
Markel, Odyssey, Federated and Hamblin.
ITEM 8
Identification and Classification of Members of the Group.
- ---------------------------------------------------------
Not applicable.
ITEM 9
Notice of Dissolution of Group.
- -------------------------------
Not applicable.
ITEM 10
Certification.
- --------------
By signing below I certify that, to the best of my knowledge and
belief, the securities referred to above were acquired in the ordinary course of
business and were not acquired for the purpose of
5
<PAGE> 11
and do not have the effect of changing or influencing the control of the issuer
of such securities and were not acquired in connection with or as a participant
in any transaction having such purposes or effect.
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Date: May 8, 1997
/s/ V. Prem Watsa
--------------------------------------
Signature
V. Prem Watsa
--------------------------------------
Name
THE SIXTY TWO INVESTMENT COMPANY
LIMITED
By: /s/ V. Prem Watsa, President
-----------------------------------------
Signature
V. Prem Watsa, President
-----------------------------------------
Name / Title
810679 ONTARIO LTD.
By: /s/ V. Prem Watsa, President
-----------------------------------------
Signature
V. Prem Watsa, President
-----------------------------------------
Name / Title
FAIRFAX FINANCIAL HOLDINGS LIMITED
By: /s/ Eric P. Salsberg, V.P. Corporate Affairs
-----------------------------------------
Signature
Eric P. Salsberg, V.P. Corporate Affairs
-----------------------------------------
Name / Title
HAMBLIN WATSA INVESTMENT COUNSEL LTD.
By: /s/ A.F. Hamblin, President
-----------------------------------------
Signature
A.F. Hamblin, President
-----------------------------------------
Name / Title
1109519 ONTARIO LIMITED,
By: /s/ V. Prem Watsa, President
-----------------------------------------
Signature
V. Prem Watsa, President
-----------------------------------------
Name / Title
6
<PAGE> 12
EXHIBIT A
TO SCHEDULE 13G FILED BY
FAIRFAX FINANCIAL HOLDINGS LIMITED AND OTHERS
Relevant Subsidiary Item 3 Classification
- ------------------- ---------------------
Lombard General Insurance
Company of Canada (c) Insurance Company
Lombard Insurance Company (c) Insurance Company
Commonwealth Insurance Company (c) Insurance Company
Markel Insurance Company of
Canada (c) Insurance Company
Odyssey Reinsurance Corporation (c) Insurance Company
Federated Life Insurance Company of
Canada (c) Insurance Company
Hamblin Watsa Investment
Counsel Ltd. (e) Investment Advisor
7
