The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from CNW Group

Genworth MI Canada Inc. Announces the Completion of its Substantial Issuer Bid

Friday, August 27, 2010

Genworth MI Canada Inc. Announces the Completion of its Substantial Issuer Bid16:23 EDT Friday, August 27, 2010 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 24(th), 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 ownership. 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 www.genworth.ca. For further information: <p align="justify"><b>Investors</b> - Samantha Cheung, 905-287-5482   <a href="mailto:samantha.cheung@genworth.com">samantha.cheung@genworth.com<br/></a><b>Media</b>- Anita DiPaolo-Booth, 905-287-5394 <a href="mailto:anita.dipaolobooth@genworth.com">anita.dipaolobooth@genworth.com</a></p>