China Oceanwide Holdings and Genworth Seek to Finalize Deal by End of November
Posted on 11/05/2020
Genworth Financial, Inc. has had recent success in its U.S. mortgage insurance business.
On October 1, 2020, Genworth and China Oceanwide Holdings Group Co., Ltd (Oceanwide) announced they agreed to extend the merger agreement deadline to not later than November 30, 2020 to provide Oceanwide with additional time to finalize the funding plan for the transaction, which was delayed due to challenges presented by the global pandemic.
On November 2, 2020, Genworth announced that Oceanwide has made significant progress on the Hony Capital funding and has provided satisfactory documentation to Genworth indicating that Hony Capital expects to be able to finalize the US$ 1.8 billion financing in November, and that Oceanwide is continuing to work diligently with the goal of closing the transaction by November 30, 2020, subject to timely receipt of outstanding regulatory re-approvals, confirmations and/or clearances. Oceanwide is also gathering funds in Mainland China to provide the remaining amount required to pay for the total Genworth purchase price of US$ 5.43 per share. In addition, Oceanwide has requested confirmation of the extension of the acceptance of filing from the Chinese National Development and Reform Commission (NDRC) with respect to the transaction.
The transaction has received all U.S. regulatory approvals needed to close the transaction, subject to confirmation from the Delaware Department of Insurance that the acquisition of Genworth’s Delaware-domiciled insurer may proceed under the existing approval.
China Oceanwide Holdings Group was created in 1985 by Lu Zhiqiang. Lu Zhiqiang is Deputy Chairman of China Minsheng Banking.
