Genworth sells entire stake in Australian mortgage insurance subsidiary

Genworth Financial Inc.'s wholly owned subsidiaries, Genworth Financial International Holdings LLC and Genworth Holdings Inc., have sold about 214.3 million shares in Genworth Mortgage Insurance Australia Ltd. for A$2.28 apiece under an underwritten agreement.

The shares represent 51.95% ownership in the Australia-based mortgage insurance company, according to S&P Global Market Intelligence data.

The sale will result in a payment of about US$247 million under an outstanding Axa promissory note. After the payment, Genworth will receive net proceeds of about US$123 million from the Genworth Mortgage Insurance Australia transaction.

The sale will be settled March 3.

Following the transaction, Genworth will no longer own any shares in Genworth Mortgage Insurance Australia. Rajinder Singh and Stuart Take will also resign from the board of the Australian company.

Genworth said it will continue to prepare for a potential IPO of its U.S. mortgage insurance business. The company turned its focus to the possible IPO of the business after its merger deal with China Oceanwide Holdings Group Co. Ltd. was put on hold indefinitely.