Genworth to spend $325M in share buy back plan
Genworth MI Canada Inc. said it plans to spend up to $325 million to buy back its shares under a Dutch auction process.
“Our board of directors believes that the recent market price of the company’s common shares does not fully reflect the value of our business and future prospects,” chairman and chief executive Brian Hurley said in a statement.
“This offer represents an equitable and efficient means of returning capital to our shareholders and allows the company to continue to pursue our growth agenda.”
Under the auction, shareholders may tender their shares at a price not less than $24.00 per share and not more than $28.00 per share.
The purchase price will be the lowest price which allows the company to buy shares up to the auction limit. Shares tendered at prices above the purchase price will be returned to shareholders.
The company said Genworth Financial Inc., the company’s majority shareholder, plans to tender enough shares to maintain its ownership at 57.5 per cent.
Genworth is a provider of private residential mortgage insurance.
The company went public last year at $19 per share in its initial public offering.
