Genworth Financial Surges on Brookfield Acquisition of Canadian Business
Brookfield Business Partners LP (BBU - Get Report) , the publicly traded investment arm of Brookfield Asset Management (BAM - Get Report) , on Tuesday said it agreed to buy majority control of Genworth MI Canada, one of the country's largest mortgage insurers, in a $2.1 billion deal.
Under terms of the agreement, Brookfield Business Partners will acquire 48.9 million shares in Genworth MI Canada from Genworth Financial for $48.86 a share, representing 57% interest in the company.
"We are very pleased to make this investment in Genworth Canada, a high-quality leader in the mortgage insurance sector," Brookfield Business Partners Managing Partner David Nowak said in a statement.
The deal follows Genworth Financial's announcement last month that it was considering "strategic alternatives" for its stake in MI Canada amid frustration about the lengthy Canadian regulatory approval for its proposed takeover by privately held China Oceanwide Holdings Group.
Brookfield Business Partners LP is a publicly traded limited partnership and the primary public vehicle through which Brookfield owns and operates the business services and industrial operations of its private equity group.
Shares of Brookfield Business Partners were up 3.16% at $36.21 on the New York Stock Exchange. Shares of Brookfield Asset Management were little changed at $50.64.