Brookfield Business Partners has closed its purchase of the shares it did not already own of Sagen MI Canada, a Toronto-based residential mortgage insurer. The deal, which has a total consideration of about C$1.6 billion, will see the company de-list from the Toronto Stock Exchange on April 6. Sagen MI Canada, formerly known as Genworth MI Canada, was originally backed by Brookfield in 2019.
TORONTO, April 1, 2021 /CNW/ – Sagen MI Canada Inc. (formerly Genworth MI Canada Inc.) (the “Company”) (TSX: MIC) and Brookfield Business Partners L.P. (NSYE: BBU) (TSX: BBU.UN) (“BBU”) are pleased to announce the completion of the previously announced plan of arrangement (the “Transaction”) pursuant to which BBU, together with certain of its affiliates and institutional partners (collectively, “Brookfield”), purchased all of the outstanding common shares of the Company (the “Common Shares”) that were not already owned by Brookfield at a price of $43.50 in cash per Common Share.
The Common Shares are expected to be de-listed from the Toronto Stock Exchange (the “TSX”) at the close of business on April 6, 2021. The Company’s outstanding Class A Preferred Shares, Series 1 will remain listed on the TSX, and the Company will remain a reporting issuer in each of the provinces and territories of Canada.
In connection with the closing of the Transaction, all of the Common Shares were exchanged in a reorganization transaction pursuant to which 1,000,000 Class A Common Shares were issued to Brookfield (the “Share Exchange”), resulting in no Common Shares outstanding and Brookfield holding all of the Class A Common Shares. The Class A Common Shares will not be listed on the TSX.
About Sagen MI Canada Inc.
Sagen MI Canada Inc. (TSX: MIC), operating through its wholly owned subsidiary, Genworth Financial Mortgage Insurance Company Canada (doing business as SagenTM), is the largest private sector residential mortgage insurer in Canada. The Company provides mortgage default insurance to Canadian residential mortgage lenders, making homeownership more accessible to first-time homebuyers. The Company differentiates itself through customer service excellence, innovative processing technology, and a robust risk management framework. For more than two decades, the Company has supported the housing market by providing thought leadership and a focus on the safety and soundness of the mortgage finance system. As at December 31, 2020, the Company had $7.5 billion total assets and $3.9 billion shareholders’ equity. Find out more at www.sagen.ca.
The Company’s head office is located at 2060 Winston Park Drive, Suite 300, Oakville, Ontario, L6H 5R7.
About Brookfield Business Partners L.P.
Brookfield Business Partners L.P. (NSYE: BBU) (TSX: BBU.UN) 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.
Brookfield Business Partners is the flagship listed business services and industrials company of Brookfield Asset Management Inc. (NYSE: BAM) (TSX: BAM.A), a leading global alternative asset manager with approximately US$600 billion of assets under management. More information is available at www.brookfield.com.
Brookfield Business Partners L.P. is listed on the New York and Toronto stock exchanges. Important information may be disseminated exclusively via the website; investors should go to https://bbu.brookfield.com to access this information.