Business & Finance
Business and Finance
Business and Finance
Wed, June 15, 2011
Tue, June 14, 2011 Genworth Announces Extension of Issuer Bid As Canadian Government Tabled Legislation to Formalize a Framework for Mortgage Insu
TORONTO, June 14, 2011 /CNW/ - Genworth MI Canada Inc. (the "Company") (TSX: MIC) announced that the Government tabled in Parliament today "An Act To Implement Certain Provisions Of The 2011 Budget As Updated On June 6, 2011", which included the Protection of Residential Mortgage or Hypothetecary Insurance Act and changes to the National Housing Act. These changes do not change the level of Government guarantee provided on insured mortgages. They are designed to formalize in legislation existing mortgage insurance arrangements with private mortgage insurers and Canada Mortgage and Housing Corporation, including the rules for Government backed insured mortgages and the terms for the Government guarantee.
While the Company does not anticipate any significant changes to its business prospects, a full assessment of the impact on the Company's business cannot be completed until the regulations referenced in the legislation are finalized. The Company looks forward to working with the Government as it develops these regulations to help ensure that the Canadian mortgage insurance market remains strong.
In connection with the announcement today of these proposed changes, the Company has extended the expiry date of its substantial issuer bid to purchase for cancellation up to C$160 million worth of its common shares (the "Offer") from 5:00 p.m. EDT today to 5:00 p.m. EDT on June 27, 2011, unless the Offer is extended further.
The Company will be mailing a notice of extension to all shareholders promptly following the announcement today. Except for the extension of the expiry date of the Offer, the terms and conditions previously set forth in the offer to purchase and circular dated May 9, 2011 (the "Offer to Purchase") continue to be applicable in all respects.
Any questions or requests for assistance, including as to how to accept the Offer while Canadian postal services may be disrupted, may be directed to CIBC Mellon Trust Company, the depositary under the Offer, at the addresses and telephone number set forth in the Offer to Purchase. Shareholders may also contact their broker, commercial bank or trust company for assistance concerning the Offer.
The full details of the Offer are described in the Offer to Purchase, as well as the related letter of transmittal and notice of guaranteed delivery, copies of which are available on SEDAR at [ www.sedar.com ].
About Genworth MI Canada Inc.
Genworth MI Canada Inc., through its subsidiary, Genworth Financial Mortgage Insurance Company Canada, has been the leading Canadian private residential mortgage insurer since 1995. Known as Genworth Financial Canada, "The Homeownership Company," it provides default mortgage insurance to Canadian residential mortgage lenders that enables low down payment borrowers to own a home more affordably and stay in their homes during difficult financial times. Genworth Financial Canada combines technological and service excellence with risk management expertise to deliver innovation to the mortgage marketplace. As of March 31, 2011, Genworth Financial Canada had $5.4 billion in total assets and $2.6 billion in shareholders' equity. Based in Oakville, Ontario, Genworth Financial Canada employs approximately 265 people across Canada. Additional information about Genworth MI Canada Inc. is available 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 the Canadian government's proposed changes to the guarantee regime regarding residential mortgages, and other statements contained in this release that are not historical facts. These statements may be identified by their use of words such as "expects", "anticipates", "contemplates", "intends", "plans", "believes", "seeks", "estimates", or words of similar meaning. These statements are based on the Company's current beliefs or expectations, including the Company's assumptions, beliefs and expectations regarding market conditions. These statements are inherently subject to significant risks, uncertainties and changes in circumstances, many of which are beyond the control of the Company. 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.
