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Genworth closes C$2.4B sale of controlling stake in MI Canada to Brookfield

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Genworth closes C$2.4B sale of controlling stake in MI Canada to Brookfield

Genworth Financial Inc. completed the sale of its majority stake in Genworth MI Canada Inc. to Brookfield Business Partners LP for C$48.86 per share, or a total transaction value of approximately C$2.4 billion (US$1.81 billion).

The purchase price was subject to some adjustments, such as Genworth MI's payment of a special dividend in October to the parent. The net cash proceeds were approximately US$1.8 billion, including the aggregate of the October special dividend and adjustments for foreign exchange, fees and expenses.

In connection with the deal, Brian Hurley, Rohit Gupta, Rajinder Singh and Jerome Upton resigned as directors of Genworth MI, while Spencer Enright, Paul Forestell, Alan Norris and David Nowak were named to the company's board.

Before the Genworth MI deal closed, Genworth Financial finished an internal reorganization under which it contributed 100% of its ownership interest in Genworth Mortgage Holdings Inc. to Genworth Holdings Inc. As a result, Genworth Holdings now owns all of Genworth Mortgage. The latter owns 100% of the issued and outstanding voting securities of Genworth's U.S. mortgage insurance companies, including Genworth Mortgage Insurance Corp.

Additionally, Genworth MI said it terminated the automatic purchase plan and related automatic disposition plan entered into in connection with its current normal course issuer bid. Those agreements facilitated the implementation of the issuer bid, including purchases of common shares from Genworth Financial.