TORONTO, April 30, 2013 /CNW/ - Genworth MI Canada Inc. (TSX: MIC) ("Genworth Canada" or the "Company") 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 proposes to 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, if considered advisable, up to an aggregate of 4,937,078 of its issued and outstanding common shares (the "Common Shares"), being approximately 5% of the Common Shares as of April 24, 2013.
Purchases may commence through the TSX on May 3, 2013 and will conclude on the earlier of the date on which purchases under the bid have been completed and May 2, 2014. Daily purchases under the NCIB will be limited to a maximum of 30,454 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 57.43%. 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 the proposed purchases pursuant to the NCIB are in the best interests of the Company and are a desirable use of corporate funds. All Common Shares purchased by Genworth Canada will be cancelled.