Genworth MortgageInsurance Australia Ltd. said March 31 that it plans to undertake acapital management initiativethat involves returning a total of A$202 million to shareholders.
As part of the initiative, the company will distribute 34 centsper share to shareholders, amounting to about A$202 million. The initiative is designedto return a portion of surplus capital to all shareholders and ensure that the companymaintains an efficient capital structure.
The cash distribution will be combined with a related share consolidation,which will be implemented in a manner that ensures each shareholder's proportionateinterest in Genworth Australia remains unchanged, the company said.
The consolidation ratio is 0.8555 and, if approved, will reducethe number of shares on issue by approximately 14.5%. The share consolidation andcapital reduction are subject to shareholder approval at the next annual generalmeeting on May 5.
The company is also considering buying back up to 150 millionordinary shares on market to optimize its capital base. If the capital reductionand share consolidation proposals are not passed, the board may consider repurchasingup to A$250 million of shares on market.
However, if the proposals proceed, the board may only seek tobuy back up to A$48 million of shares.
As of March 30, US$1 wasequivalent to A$1.30.