Genworth MI Canada Inc. Announces Acceptance by TSX of Normal Course Issuer Bid
TORONTO, April 29, 2014 /CNW/ - Genworth MI Canada Inc. (the "Company") (TSX:
MIC) announced today acceptance by the Toronto Stock Exchange (the "TSX") of
the Company's Notice of Intention to Make a Normal Course Issuer Bid ("NCIB").
Pursuant to the NCIB, Genworth Canada may, if considered advisable, purchase
through the facilities of the TSX or through other permitted means (including
through other published markets), from time to time over the next 12 months,
up to an aggregate of 4,746,504 of its issued and outstanding common shares
(the "Common Shares"), being approximately 5% of the Common Shares as of April
Purchases may commence through the TSX on May 5, 2014 and will conclude on the
earlier of the date on which purchases under the bid have been completed and
May 4, 2015. Daily purchases under the NCIB will be limited to a maximum of
38,776 Common Shares, other than purchases made in compliance with the
provisions of the block purchase exemption of the TSX rules and purchases from
Genworth Financial, Inc., the Company's majority shareholder, and its
affiliates (collectively, "Genworth Financial").
Genworth Financial, will be permitted to sell its Common Shares to the Company
in accordance with an exemption granted by the TSX pursuant to its rules,
regulations and policies in connection with the NCIB in order to maintain its
proportionate percentage ownership at approximately 57.4%. Genworth Financial
has advised the Company that it intends to participate in the NCIB. The
maximum number of Common Shares that may be purchased pursuant to the NCIB
will also be reduced by the number of Common Shares purchased by the Company
from Genworth Financial.
The Board of Directors of Genworth Canada believes that any purchases pursuant
to the NCIB, if considered advisable, will be in the best interests of the
Company and will be a desirable use of corporate funds. All Common Shares
purchased by Genworth Canada will be cancelled.
The NCIB will be implemented by the Company's broker responsible for making
purchases of Common Shares on behalf of Genworth Canada pursuant to an
automatic purchase plan agreement to be entered into between such broker and
Genworth Canada (the "APP Agreement"). Pursuant to the APP Agreement, the
timing for the purchase of Common Shares, the number of Common Shares
purchased and the price payable for the Common Shares will be determined by
the Company's broker in its sole discretion, without consultation with the
Company, having regard to the price limitations and other terms of the APP
Agreement, as well as the prevailing market price of the Common Shares at the
time of purchase. The APP Agreement has been reviewed by the TSX and will be
implemented following commencement of the NCIB.
Purchases from Genworth Financial will be made pursuant to the TSX exemption
on any trading day that the Company makes a purchase from other shareholders.
Purchases from Genworth Financial will be made during the TSX's Special
Trading Session pursuant to an automatic disposition plan agreement to be
entered into between the Company's broker and Genworth Financial. In the event
that Genworth Financial does not sell Common Shares on any trading day (other
than as a result of a market disruption), the TSX exemption will cease to
apply and the Company will not be permitted to make any further purchases from
Genworth Financial under the terms of the NCIB.
The Company has made purchases of its Common Shares under a normal course
issuer bid approved by the TSX on April 30, 2013, and set to expire May 2,
2014. Purchases from all shareholders other than Genworth Financial were made
on the open market through the facilities of the TSX and/or through other
permitted means (including through other published markets). Pursuant to an
exemption granted by the TSX, Genworth Financial sold its Common Shares to the
Company outside the provisions of, but concurrently with, the normal course
issuer bid in order to maintain its proportionate percentage ownership at
approximately 57.4%. Purchases from Genworth Financial were made by way of
put-through during the TSX's Special Trading Session from 4:15 to 5:00 p.m.
through one broker retained for this purpose. To date, the Company purchased
for cancellation 3,903,117 of its Common Shares at a weighted average price
per common share of C$26.90.
About Genworth MI Canada Inc.
Genworth MI Canada Inc. (TSX: MIC) through its subsidiary, Genworth Financial
Mortgage Insurance Company Canada (Genworth Canada), is the largest private
residential mortgage insurer in Canada. The Company provides mortgage default
insurance to Canadian residential mortgage lenders, making homeownership more
accessible to first-time homebuyers. Genworth Canada differentiates itself
through customer service excellence, innovative processing technology, and a
robust risk management framework. For almost two decades, Genworth Canada has
supported the housing market by providing thought leadership and a focus on
the safety and soundness of the mortgage finance system. As at March 31, 2014,
Genworth Canada, had $5.5 billion total assets and $3.2 billion shareholders'
equity. Find out more at www.genworth.ca.
Cautionary Note Regarding Forward-Looking Statements
This press release includes certain forward-looking statements. These
forward-looking statements include, but are not limited to, the Company's
plans, objectives, expectations and intentions, including the Company's
expectations regarding future developments in connection with the normal
course issuer bid and the receipt of regulatory approvals, the Company's
intention to repurchase common shares from the Company's shareholders, the
Company's expectations regarding the participation of Genworth Financial, Inc.
and its affiliates in the normal course issuer bid and other statements
contained in this release that are not historical facts. These statements may
be identified by their use of words such as "may", "would", "could", "will",
"intend", "plan", "anticipate", "believe", "seek", "propose", "estimate",
"expect", or similar expressions, as they relate to the Company are intended
to identify forward-looking statements. Specific forward looking statements in
this document include, but are not limited to, statements with respect to the
Company's expectations regarding the normal course issuer bid and Genworth
Financial, Inc.'s participation in the same. These statements are inherently
subject to significant risks, uncertainties and changes in circumstances, many
of which are beyond the Company's control. The Company's actual results may
differ materially from those expressed or implied by such forward-looking
statements, including as a result of changes in global, political, economic,
business, competitive, market and regulatory factors, and the other risks
described in the Company's Annual Information Form. Other than as required by
applicable laws, the Company undertakes no obligation to publicly update or
revise any forward-looking statement, whether as a result of new information,
future developments or otherwise.
SOURCE Genworth MI Canada
Investors: Samantha Cheung, 905-287-5482, firstname.lastname@example.org; Media:
Lisa Azzuolo, 905-287-5520, email@example.com
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CO: Genworth Canada
-0- Apr/29/2014 21:33 GMT
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