China Oceanwide Holdings Group Co. Ltd. has agreed to pay $5.43 per share in cash for Genworth Financial.
Completing the deal would give Genworth — a Richmond, Virginia-based seller of long-term care insurance, mortgage guaranty insurance and annuities — a value of about $2.7 billion, Genworth said Sunday.
China Oceanwide, a family-owned, Beijing-based real estate developer, has also agreed to provide $525 million in cash for Genworth’s U.S. life insurance businesses, and $600 million in cash Genworth can use to refinance or retire notes set to mature in 2018.
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The deal is subject to approval by Genworth’s stockholders as well as by insurance regulators. The companies hope to complete the deal by mid-2017.
China Oceanwide was founded in 1985 by Lu Zhiqiang. It now owns a securities broker, a wealth management unit and Asia Pacific P&C Insurance as well as the real estate development business. The company would make the Genworth deal through its Asia Pacific Global Capital Co. Ltd. investment company unit.
“Genworth’s day-to-day operations are not expected to change as a result of this transaction,” Genworth said.
China Oceanwide would operate Genworth as a stand-alone subsidiary, and Genworth’s senior management team would continue to run the business from the current offices in Richmond, Genworth said.
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