China Oceanwide and Genworth Extend Deal Completion Deadline
The old deadline was Jan. 31. The new deadline is March 15.
China Oceanwide Holdings Group Company Ltd. and Genworth Financial Inc. have announced their eighth deal completion period extension.
The companies announced today that they have pushed the deadline back to March 15, from Jan. 31.
China Oceanwide agreed to acquire Genworth, through a deal with a value of about $2.7 billion, in October 2016.
(Related: Genworth’s Suitor Reconfigures Real Estate Development Operations)
China Oceanwide is a Beijing-based real estate development and financial services company.
Genworth is a Richmond, Virginia-based company that has been a major player in the U.S. life, annuity and mortgage insurance markets, and a dominant player in the long-term care insurance market.
Genworth is still active in the mortgage insurance markets in the United States, Canada and Australia.
China Oceanwide and Genworth have now received all of the approvals they need from U.S. insurance regulators, but they still need approvals from the Financial Industry Regulatory Authority (FINRA) in the United States, and from the regulators in China who are in charge of currency conversion and the transfer of funds, the companies said.
China Oceanwide has agreed to provide $1.5 billion in support for Genworth in connection with the deal.
“We remain committed to the transaction, including the $1.5 billion contribution to Genworth over time following the consummation of the transaction,” Lu Zhiqiang, the chairman of China Oceanwide, said in a statement. “The first tranche of $500 million is expected to be contributed by March 31, 2019, with the remainder expected to be contributed by the end of 2019.”
— Read Genworth and China Oceanwide Push Back Deal Deadline, on ThinkAdvisor.
— Connect with ThinkAdvisor Life/Health on LinkedIn and Twitter.