A company begun in the American mid-Atlantic (in another century) is now experiencing big pre-market gains on news of an acquisition for its Canadian subsidiary.
This morning, Genworth Financial (GNW) soared 15% on news that Brookfield Business partners LP has agreed to purchase controlling interest in Genworth MI Canada.
The Canadian business represents one of the country’s most prominent mortgage insurance firms – the original Genworth Financial, which started in the state of Virginia as the Life Insurance Company of Virginia in 1871, has focused on retirement and protection insurance and mortgage insurance, while offering items like long-term care insurance and annuities.
Previously, Genworth Canada had been under consideration for a buyout by privately owned China Oceanlight Holdings Group.
Now, Brookfield Business Partners, a publicly traded limited partnership, is apparently going to buy control of Genworth Canada for $2.1 billion.
As of this morning, GNW stands around $4.30 before the bell, a pre-market increase of over 11%.
This brings Genworth stock toward six-month highs, as a crash in February brought the stock down to around $3.85.
Meanwhile, Brookfield Business Partners is still down several points over a five day trading period, and over 10% down for the month. However, BBU leaders seem pleased.
“We are very pleased to make this investment in Genworth Canada, a high-quality leader in the mortgage insurance sector,” Brookfield Business Partners Managing Partner David Nowak said in a press statement.
Consider GNW an interesting timely tale of an American firm turned multinational bringing value from its international holdings, at a time when SP500 and DJIA have traders looking for alternatives.
