Brookfield Business Partners to acquire control of Genworth Canada

August 13, 2019

Torys is representing Brookfield Business Partners with a team that includes Karrin Powys-Lybbe, Steven Rotchtin, Jacob Posen and Riley Harmon (corporate/M&A), Jill McCutcheon, Eli Monas and Hailey Schnier (regulatory), Omar Wakil and Ian Li (competition), Adam Delean, Jonathan Wiener and Jacob Weinstock (financing), Ed Fan and Yu Seon Gadsden-Chung (IP), Susan Nickerson and Tom Stevenson (employee benefits) and Corrado Cardarelli (tax).

On August 13, 2019, Brookfield Business Partners L.P. (“Brookfield Business Partners”) announced it has entered an agreement to acquire an aggregate of 48,944,645 common shares of Genworth MI Canada Inc. (“Genworth Canada” or “the business”), representing an approximate 57% controlling interest in the business, from Genworth Financial, Inc. for approximately C$2.4 billion. Immediately prior to entering into the purchase agreement, Brookfield Business Partners did not own any common shares in the capital of Genworth Canada.

Brookfield Business Partners intends to fund approximately US$700 million of the purchase on closing and for certain of its institutional partners to co-invest alongside it for the balance. Brookfield Business Partners has also agreed to, between now and the closing of the transaction, provide Genworth Financial, Inc. with a bridge loan of up to US$850 million that is intended to be repaid from proceeds of the sale of its interest in Genworth Canada. The transaction, including the bridge loan, will be funded from Brookfield Business Partners’ existing liquidity.

Closing of the transaction is expected to occur before the end of 2019.

Brookfield Business Partners is a business services and industrials company focused on owning and operating high-quality businesses that benefit from barriers to entry and/or low production costs. It is the flagship listed business services and industrials company of Brookfield Asset Management Inc.

Genworth Canada, through its subsidiary Genworth Financial Mortgage Insurance Company Canada, is the largest private sector residential mortgage insurer in Canada, providing mortgage default insurance to Canadian residential mortgage lenders, making homeownership more accessible to first-time homebuyers.

Further information can be found on Globe Newswire’s website.