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United States : $850M SPA signed to sell RADIAN ASSET.

Radian Group Inc.'s mortgage insurance arm, Radian Guaranty Inc., has announced that it has signed a Share Purchase Agreement (SPA) to sell all of the issued and outstanding stocks of Radian's financial guaranty insurance unit, Radian Asset Assurance Inc., to Assured Guaranty Corp., a subsidiary of Assured Guaranty Ltd., in a deal worth around $810 million.

The acquisition price can be paid in cash consideration on the date of completion.

The SPA allows for a full transfer of Radian Asset's $19.4 billion in net par outstanding to Assured Guaranty Corp. as of 30th September, 2014.

The company said the deal to sell Radian Asset would be completed in the first half of 2015, subject to fulfillment of customary closing terms including regulatory approvals.

CEO of Radian, S.A. Ibrahim, said, "While Radian Asset has been an important part of our history and our success, we are committed to streamlining our business and aligning our strategy toward the mortgage and real estate markets. This agreement marks an important milestone as we prepare for finalization of the proposed PMIERs in 2015. While we expect to fully comply, the sale of Radian Asset will help to accelerate our ability to do so. We look forward to simplifying Radian s focus on our core strengths, which we believe will pave the way for future top-line growth."

Goldman Sachs & Co. is the financial adviser on the sale of Radian Asset.

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Publication:Mena Report
Date:Dec 24, 2014
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