Brookfield Business Partners To Acquire 57% Controlling Interest In Genworth Canada From Genworth Financial For $1.8B

Author: Benzinga Newsdesk | August 13, 2019 06:30am

rookfield Business Partners L.P. (NYSE:BBU) (TSX:BBU) ("Brookfield Business Partners") announced today an agreement (the “Purchase Agreement”) to acquire an aggregate of 48,944,645 common shares (the “Acquired Shares”) of Genworth MI Canada Inc. (“Genworth Canada” or “the business”) (TSX:MIC), representing an approximate 57% controlling interest in the business, from Genworth Financial, Inc. (NYSE:GNW) for approximately C$2.4 billion (US$1.8 billion) or C$48.86 per share. Immediately prior to entering into the Purchase Agreement, Brookfield Business Partners did not own any common shares in the capital of Genworth Canada (“Shares”).

Genworth Canada, through its subsidiary Genworth Financial Mortgage Insurance Company Canada, is the largest private sector residential mortgage insurer in Canada, providing mortgage default insurance to Canadian residential mortgage lenders, making homeownership more accessible to first-time homebuyers.

“We are very pleased to make this investment in Genworth Canada, a high-quality leader in the mortgage insurance sector,” said David Nowak, Managing Partner, Brookfield Business Partners.  “Genworth is an industry-leading business that generates strong, consistent earnings and operates in a sector with high barriers to entry. We look forward to partnering with management to support its ongoing success, drawing on our expertise in insurance and residential real estate.”

Posted In: BBU GNW TSX:BBU TSX:MIC