TORONTO, Aug. 27 /CNW/ - Genworth MI Canada Inc. (the "Company") (TSX:
MIC) announced today that it has taken up and paid for 12,310,606 common
shares at a price of C$26.40 per common share under the Company's
substantial issuer bid to repurchase up to C$325 million of its common
shares. The shares purchased represent approximately 10.5% of the common
shares currently outstanding. After giving effect to the repurchase, the
outstanding number of shares are 104,789,394 (undiluted).
Shareholders had the opportunity under the terms of the bid to tender
shares until 5:00 p.m. EDT on August 24th, through a Dutch
auction process, at a price of their choice between $24.00 and $28.00.
Alternatively, shareholders were entitled to make a proportionate tender
that would have allowed them to maintain their proportionate share
The auction process was oversubscribed. As a result, shareholders who
made an auction tender at a price at or below C$26.40 had 59.62% of
their shares purchased by the Company. However, under the terms of the
bid, odd lots submitted at or below that price were purchased in their
totality and adjustments were made to avoid creation of fractional
shares. Shareholders who made a proportional tender had 10.51% of their
shares purchased by the Company.
The ownership of the shares not purchased by the Company under the
substantial issuer bid will not be affected by the transaction.
Payment and settlement will be effected by the Canadian Depository for
Securities in accordance with its settlement procedures commencing on or
about August 30, 2010.
Genworth Financial, Inc., via its wholly owned subsidiary, Brookfield
Life Assurance Company Limited, the principal shareholder of the
Company, participated in the issuer bid by making a proportionate
tender. As a result, it continues to hold approximately 57.5% of the
outstanding common shares of the Company following completion of the bid.
Cautionary Note Regarding Forward-Looking Statements
This press release includes certain forward-looking statements. These
forward-looking statements include, but are not limited to, Genworth MI
Canada's plans, objectives, expectations and intentions, including the
Company's plans with respect to its capital structure, and other
statements contained in this release that are not historical facts.
These statements may be identified by their use of words such as
"expects", "anticipates", "contemplates", "intends", "plans",
"believes", "seeks", "estimates", or words of similar meaning. These
statements are based on Genworth MI Canada Inc.'s current beliefs or
expectations, including in the case of statements regarding the
Company's plans with respect to its capital structure, the Company's
assumptions, beliefs and expectations regarding its future capital
requirements, market conditions and its ability to obtain regulatory
approvals. These statements are inherently subject to significant risks,
uncertainties and changes in circumstances, many of which are beyond the
control of Genworth MI Canada Inc. The Company's actual results may
differ materially from those expressed or implied by such forward
looking statements, including as a result of changes in global,
political, economic, business, competitive, market and regulatory
factors, and the other risks described in the Company's Annual
Information Form. Other than as required by applicable laws, the
Company undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future developments or otherwise.
About Genworth MI Canada Inc.
Genworth MI Canada Inc., through its subsidiary, Genworth Financial
Mortgage Insurance Company Canada, has been the leading Canadian private
residential mortgage insurer since 1995. Known as Genworth Financial
Canada, "The Homeownership Company," it provides default mortgage
insurance to Canadian residential mortgage lenders that enables low down
payment borrowers to own a home more affordably and stay in their homes
during difficult financial times. Genworth Financial Canada combines
technological and service excellence with risk management expertise to
deliver innovation to the mortgage marketplace. As of June 30, 2010,
Genworth Financial Canada had $5.5 billion in total assets and $2.8
billion in shareholders' equity. Based in Oakville, Ontario, Genworth
Financial Canada employs approximately 265 people across Canada.
Additional information about Genworth MI Canada Inc. is available at href="http://www.genworth.ca/">www.genworth.ca.
SOURCE Genworth MI Canada
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