Genworth MI Canada Inc., also known by its current operational name Sagen MI Canada, has announced that it has entered into an agreement that will see its outstanding common shares acquired by the US-based Brookfield Business Partners L.P.
The transaction placed the residential mortgage insurer’s value at around $3.8 billion.
The agreement will see Brookfield pay $43.50 per share for the shares it does not hold. At present, Brookfield owns a 57% stake at Genworth.
Genworth said that its board of directors, aside from a few conflicted members, approved the agreement, following a unanimous recommendation of a special committee of independent directors.
The deal is expected to close in the first half of 2021.
“The transaction, together with our company’s recent rebranding as Sagen MI Canada, represents an exciting new chapter for the company,” said Stuart Levings, Genworth president and CEO. “We look forward under Brookfield’s ownership to continuing to work with lenders, regulators and mortgage professionals to help people responsibly achieve and maintain the dream of home ownership.”
“We are pleased to have reached this agreement, which will provide existing shareholders of the company with price certainty and a meaningful premium in an uncertain market environment,” said David Nowak, managing partner at Brookfield Business Partners.