TORONTO, June 30, 2011 /CNW/ - Genworth MI Canada Inc. (the "Company")
(TSX: MIC) announced today that it has taken up and paid for 6,153,846
common shares at a price of C$26.00 per common share under the
Company's substantial issuer bid to repurchase up to C$160 million of
its common shares. The shares purchased represent approximately 5.87%
of the common shares currently outstanding. After giving effect to the
repurchase, the outstanding number of shares is 98,641,835 (undiluted).
Shareholders had the opportunity under the terms of the bid to tender
shares until 5:00 p.m. EDT on June 27th, through a Dutch auction process, at a price of their choice between
C$26.00 and C$29.00. Alternatively, shareholders were entitled to make
a proportionate tender that would have allowed them to maintain their
proportionate share ownership.
The auction process was oversubscribed. As a result, shareholders who
made an auction tender at a price of C$26.00 had approximately 88.39%
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
5.87% 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 June 30, 2011.
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
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, 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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