Genworth (ASX:GMA) share price dives 17% after CBA contract update
The Genworth share price has plummeted after a contract update with the Commonwealth Bank of Australia
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What You Need to Know
Genworth entered Australia’s mortgage insurance market in 1997, paying about $43 million to get in.
The firm has been raising cash by selling some of its operations.
The new deal could generate about $379 million in total proceeds.
Genworth Financial Inc. is preparing to hand off mortgage insurance operations in Australia that the company has owned since 1997.
The Richmond, Virginia-based company said Sunday that two subsidiaries have agreed to sell their 52% stake in Genworth Mortgage Insurance Australia Ltd. to institutional investors through an underwritten sale.
The names of the buyers were not disclosed.
The deal involves about 214.3 million shares of Genworth Australia. The price will be the equivalent of about $1.77 in U.S. dollars, giving the transaction a total value of about $379 million.
Why the Genworth (ASX:GMA) share price is tumbling 6% today
Gretchen Kennedy | February 12, 2021 12:07pm |
More on: Image source: Getty Images
Genworth Mortgage Insurance Australia Ltd(ASX: GMA) shares are tumbling lower today after the company released its financial results for the full year ending 31 December 2020 (FY20). At the time of writing, the Genworth share price has fallen 5.65% lower to $2.67.
Why is the Genworth share price sinking?
The Genworth share price is on the slide today after the business reported an underlying net loss after tax of $104.3 million for FY20. This compares to a $97 million net profit after tax during FY19.