The PMI Group, a provider of financial products for residential mortgages, public finance obligations and asset-backed securities, has signed a definitive agreement with QBE Insurance Group for the sale and transfer of its Asia operations, PMI Asia.
The purchase price is approximately 100% of the net tangible asset value of PMI Asia under US GAAP as of June 30, 2008. The aggregate purchase price payable upon closing is approximately $56 million, subject to adjustment under certain limited circumstances, including in the event of a material adverse change in PMI Asia’s business prior to closing.
Closing of the transaction is subject, among other things, to the receipt of necessary regulatory, bank and other third-party approvals and consents. Closing is expected to be completed by September or October, 2008.
Credit Suisse acted as the financial advisor to The PMI Group and Allens Arthur Robinson and Sullivan & Cromwell served as its legal advisors.
Steve Smith, chairman and CEO of PMI, said: This transaction represents further progress in the execution of our five-point plan and provides additional financial resources to support our holding company and core US mortgage insurance business.