Genworth Mortgage Insurance Australia announced yesterday that its majority shareholder, US insurer Genworth Financial, would sell a significant portion of its holding in the Australian company.
Genworth Financial has entered into an underwriting agreement in relation to 92.3 million GMA shares, which represents a 14.2 per cent holding.
On completion of the sale Genworth Financial will hold 52 per cent of GMA's issued capital.
GMA was listed on the Australian Securities Exchange in May last year when Genworth Financial sold 34 per cent of its holding, raising A$583 million at an offer price of $2.65 a share.
The stock closed yesterday at $3.14 a share. Goldman Sachs is handling the sale.
GMA chief executive Ellie Comerford said in a statement that the sale would have no impact on the local company's operations, its board structure or its relationship with its majority shareholder.
Genworth Financial chief executive Tom McInerney said in a statement that the transaction would advance Genworth's ability to reduce debt and meet its compliance requirements.
The Australian reported that fund manager Perpetual had snapped up the stake.