Genworth Financial To Sell Majority Interest In Genworth Canada To Brookfield

(RTTNews) - Brookfield Business Partners (BBU) has agreed to buy Genworth Financial's (GNW) majority interest in Genworth Canada, the largest private sector residential mortgage insurer in Canada. Genworth Financial's shares represent approximately 56.9% of Genworth Canada's outstanding common shares.

The purchase price of C$48.86 per share results in a total deal value of approximately C$2.4 billion. The transaction is anticipated to close by the end of 2019.

Genworth expects the sale would allow the company to increase financial flexibility, whether or not the Oceanwide transaction is completed. Genworth and Oceanwide have extended the merger agreement deadline to not later than December 31, 2019.