Brookfield Business Partners L.P. (NYSE: BBU) with affiliates and institutional partners reported entry into an arrangement agreement to acquire all of the outstanding common shares of Genworth MI Canada Inc. which is now operating as Sagen MI Canada that is not already owned by Brookfield. The company is the largest private residential mortgage insurer in Canada that provides mortgage default insurance to Canadian residential mortgage lenders which make homeownership more accessible to new home buyers.
Brookfield currently owns 57% controlling interest in the company and will purchase the remaining outstanding common shares of the company at a value of C$43.50 per share. This is a 22% premium of the company’s closing share value on the Toronto Stock Exchange on October 23rd, 2020, the last trading day prior to the announcement. “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, Brookfield Business Partners.
Stuart Levings, President and CEO, stated, “The Transaction, together with our Company’s recent rebranding as Sagen MI CanadaTM, represents an exciting new chapter for the Company. 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.”
At the close of the Transaction, aggregate consideration payable by Brookfield to holders of common shares of the company will be USD 1.2 Billion. Brookfield Business Partners will fund USD 460 Million and institutional partners will fund the balance of the purchase price.