Brookfield Business Partners to buy residential mortgage insurer Genworth MI Canada

TORONTO – Brookfield Business Partners LP has signed a deal to buy the remaining interest in Genworth MI Canada Inc. that it does not already own in an offer that values the company at about $3.8 billion.

Brookfield owns a 57 per cent stake in the residential mortgage insurance company.

Under the terms of the agreement, Brookfield will pay $43.50 per share for the shares it does not hold

Genworth shares closed at $35.58 on the Toronto Stock Exchange on Friday.

The deal requires approval by a two-thirds majority vote by shareholders, as well as the approval by a simple majority of votes cast by minority shareholders, which excludes Brookfield.

Genworth MI Canada rebranded earlier this month and has been operating under the Sagen MI Canada banner.

This report by The Canadian Press was first published Oct. 26, 2020.

Companies in this story: (TSX:MIC, TSX:BBU.UN)