TORONTO, June 27, 2011 /CNW/ - Genworth MI Canada Inc. (the "Company")
(TSX: MIC) announced today the preliminary results of its substantial
issuer bid to purchase for cancellation up to C$160 million worth of
its common shares. The offer to purchase expired at 5:00 p.m. EDT
The Company has determined that, in accordance with the terms of the
bid, it expects to take up approximately 6.2 million shares at a
purchase price of C$26.00 per share. These shares represent
approximately 5.87% of the common shares currently outstanding. After
giving effect to the repurchase, the number of common shares
outstanding would amount to approximately 98.6 million (undiluted).
Under the terms of the bid, shareholders had the opportunity to tender
shares, through a Dutch auction process, at a price of their choice
between C$26.00 and C$29.00. More than 17.4 million common shares were
validly tendered to the bid and not withdrawn pursuant to auction
tenders, of which approximately 2.6 million shares are expected to be
taken up and purchased. Since the bid was oversubscribed, shareholders
who tendered shares pursuant to an auction tender will have the number
of shares purchased prorated following the determination of the final
results of the substantial issuer bid. The Company currently expects
that shareholders who made an auction tender at C$26.00 will have
approximately 88% of their tendered shares purchased by the Company.
Alternatively, shareholders could have made a proportionate tender that
would have allowed them to maintain their proportionate share ownership
in the Company. The Company expects to take up and purchase
approximately 3.6 million shares pursuant to proportionate tenders.
Upon take up and payment of the shares repurchased, the Company will
release final results, including the proration factor.
Genworth Financial, Inc., via its wholly owned subsidiary, Brookfield
Life Assurance Company Limited, the majority shareholder of the
Company, participated in the substantial issuer bid by making a
proportionate tender and is expected to continue to hold approximately
57.5% of the outstanding common shares of the Company.
The full details of the substantial issuer bid are described in the
offer to purchase and circular dated May 9, 2011 and the notice of
extension dated June 15, 2011, as well as the related letter of
transmittal and notice of guaranteed delivery, copies of which are
available on SEDAR at www.sedar.com.
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 March 31, 2011, Genworth Financial Canada had $5.4
billion in total assets and $2.6 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 www.genworth.ca.
Cautionary Note Regarding Forward-Looking Statements
This press release includes certain forward-looking statements. These
forward-looking statements include, but are not limited to, the
Company's plans, objectives, expectations and intentions, including the
Company's expectations regarding the final results of the substantial
issuer bid, 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 the Company's current beliefs or
expectations, including the Company's assumptions, beliefs and
expectations regarding market conditions. These statements are
inherently subject to significant risks, uncertainties and changes in
circumstances, many of which are beyond the control of the Company.
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.
SOURCE Genworth MI Canada
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