Brookfield Business Partners LP announce that it has agreed to buy majority stake in mortgage insurer Genworth MI Canada in a $2.1 billion deal.
As part of the deal, Brookfield Business Partners will acquire 48.9 million shares - representing 57% interest - in Genworth MI Canada from Genworth Financial, for $48.86 a share.
The deal is expected to close by the end of 2019, subject to approval under the Insurance Companies Act (Canada) and Competition Act (Canada).
Brookfield Business Partners also has promised to provide Genworth Financial, Inc., with up to USD$850 million in bridge financing, in the event that regulatory approvals for the transaction are not received by October 31, 2019.
Goldman Sachs & Co. LLC and Lazard Frères & Co. LLC are acting as financial advisors to Genworth. Osler, Hoskin & Harcourt LLP and Sullivan & Cromwell LLP are acting as legal advisors to Genworth and Richards, Layton & Finger is acting as legal advisor to the Genworth Board of Directors.