TORONTO, July 1, 2019 /CNW/ - Genworth MI Canada Inc. (the "Company") (TSX: MIC) acknowledges the announcement today by Genworth Financial, Inc. ("Genworth Financial") that Genworth Financial and China Oceanwide Holdings Group Co., Ltd. (Oceanwide) have agreed to an 11th waiver and agreement of each party's right to terminate the previously announced merger agreement beyond the current deadline of June 30, 2019.
In conjunction with the extension, Genworth Financial has received Oceanwide's consent to solicit interest in a potential disposition of its interest in Genworth MI Canada Inc. (MI Canada). As noted in their press release, the parties decided to consider strategic alternatives for MI Canada as a result of the absence of any substantive progress in discussions on the transaction with Canadian regulators. The 11th waiver and agreement extends the merger agreement deadline to not later than November 30, 2019, which Oceanwide and Genworth Financial believe should allow sufficient time for the parties to explore disposition options.
To see the full Genworth Financial press release, please go to Genworth.com/investors.
"Genworth Canada remains focused on its strategic priorities and meeting the needs of all its stakeholders", said Stuart Levings, President and CEO. "Our board of directors and the special committee of independent directors, which was established in 2016 in connection with the Genworth Financial - Oceanwide transaction, will continue to monitor the status of that transaction and, as necessary, engage with Genworth Financial and other parties regarding the potential disposition of its interest in the Company or other strategic alternatives."
Further to Genworth Financial's announcement, there can be no assurance that a disposition by Genworth Financial of all or any portion of the common shares of the Company that it currently owns will occur or that it will occur in the manner or on the terms and conditions contemplated in the Genworth Financial press release. The Company will provide additional information on Genworth Financial's proposed disposition as it determines advisable and as required by applicable law.
About Genworth MI Canada Inc.
Genworth MI Canada Inc. (TSX: MIC) through its subsidiary, Genworth Financial Mortgage Insurance Company Canada ("Genworth Canada"), is the largest private residential mortgage insurer in Canada. The Company provides mortgage default insurance to Canadian residential mortgage lenders, making homeownership more accessible to first-time homebuyers. Genworth Canada differentiates itself through customer service excellence, innovative processing technology, and a robust risk management framework. For more than two decades, Genworth Canada has supported the housing market by providing thought leadership and a focus on the safety and soundness of the mortgage finance system. As at March 31, 2019, the Company had $6.9 billion total assets and $4.1 billion total shareholders' equity. Find out more at www.genworth.ca.
Cautionary Note Regarding Forward-Looking Statements
Certain statements made in this press release contain forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). When used in this press release, the words "may", "would", "could, "will", "intend", "plan", "anticipate", "believe", "seek", "propose", "estimate", "expect", and similar expressions, as they relate to the Company are intended to identify forward-looking statements. Specific forward-looking statements in this document include, but are not limited to, statements with respect to: the extension of the Genworth Financial – Oceanwide merger agreement deadline date; the intention of Genworth Financial to dispose of common shares of the Company; the structure of any such proposed transaction; the terms, conditions and required consents in connection with such disposition; and the impact, if any, of any such transaction on the Company or its common shares.
Since forward-looking statements relate to future events and conditions, by their very nature they require making assumptions and involve inherent risks and uncertainties. The Company cautions that although it is believed that the assumptions are reasonable in the circumstances, these risks and uncertainties give rise to the possibility that actual results may differ materially from the expectations set out in the forward-looking statements. The Company does not undertake to update any forward-looking statements, except to the extent required by applicable securities laws.
SOURCE Genworth MI Canada