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Brookfield acquires mortgage insurer Genworth Canada in $2.4 Billion deal

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The private equity arm of Brookfield Asset Management has reached a $2.4-billion deal to acquire control of Genworth MI Canada Inc., the country’s second-largest mortgage insurer.

Brookfield Business Partners LP, a publicly-traded subsidiary of the global asset manager, is buying a 57-per-cent stake in Genworth MI Canada from the mortgage insurer’s American parent company, Genworth Financial Inc. Brookfield intends to draw on its balance sheet to pay about US$700-million of the purchase price, and to bring in institutional partners to fund the remainder.

Brookfield will pay $48.86 per share, acquiring nearly 49 million shares in Genworth MI Canada. At Monday’s close on the Toronto Stock Exchange, the shares were trading at $51.46 – near the stock’s all-time high.

Reported by The Globe & Mail

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