Genworth Financial sells ownership in Genworth Mortgage Insurance Australia
Genworth Financial announced that its wholly-owned subsidiaries Genworth Financial International Holdings and Genworth Holdings have sold, through an underwritten agreement, approximately 214.3 million shares in Genworth Mortgage Insurance Australia Limited at A$2.28 per share. This represents Genworth’s entire ownership position in Genworth Australia. Settlement of the sale will occur on March 3 (Sydney time).
“We’re pleased to take this additional step in our revised strategic plan. This transaction will help enhance our holding company liquidity ahead of our near-term obligations, including our debt due in September 2021 and upcoming AXA liabilities due in 2022,” said Tom McInerney, Genworth President and CEO.
Completion of this transaction will result in a payment of approximately USD$247 million under our outstanding AXA promissory note, pursuant to its terms as amended by the parties in connection with this transaction. Following this payment, the net proceeds available to Genworth will be approximately USD$123 million.
Genworth will continue to prepare for a potential partial IPO of Genworth’s U.S. Mortgage Insurance business, subject to market conditions as well as the satisfaction of various conditions and approvals.