Genworth Financial, Inc. has announced the closing of the sale of its majority share in Genworth MI Canada Inc. to Brookfield Business Partners.
The deal was announced in August, and sees Brookfield Business Partners acquire a 57% controlling interest in Genworth MI Canada Inc. for approximately CAD 2.4 billion (USD 1.8 billion).
An announcement on the closure of the sale explains that the purchase price was subject to certain adjustments, including Genworth Canada’s payment of a special dividend in October 2019 to Genworth.
The net cash proceeds for the sale, including the aggregate amount of the special dividend paid in October and also adjustments for foreign exchange, fees and expenses, were approximately $1.8 billion.
Prior to closing, Genworth completed an internal reorganisation where the firm contributed 100% of its ownership interest in Genworth Mortgage Holdings, Inc. to Genworth Holdings, Inc.
As a result of this, Genworth Holdings now owns 100% of GMHI, which owns 100% of the issued and outstanding voting securities of Genworth’s U.S. mortgage insurance companies, including Genworth Mortgage Insurance Corporation.
