Genworth Financial Inc. says its would-be buyer, China Oceanwide Holdings Group Co. Ltd., has confirmed having one part of the deal financing in place and is now working on finalizing the rest of the financing.
China Oceanwide agreed to pay a total of $2.7 billion for Genworth in October 2016.
China Oceanwide is a Beijing-based real estate developer and financial services company.
Genworth is a Richmond, Virginia-based mortgage insurer that has been a major player in the life insurance, annuity and long-term care insurance markets.
Genworth said earlier this week that the companies now have all U.S. approvals that they need, except for a confirmation from the Delaware Department of Insurance that an existing Delaware approval is still valid.
Genworth reported that China Oceanwide has been planning to use a $1.8 billion financing arrangement from Hony Capital to pay for part of the deal.
The Hony Capital financing arrangement was set to expire March 31.
“Genworth has been informed by Oceanwide that the previously disclosed financing arrangement between Oceanwide and Hony Capital for $1.8 billion has been successfully extended to June 30, 2020,” Genworth said in an announcement issued Wednesday. ”As previously disclosed, Oceanwide had a financing arrangement for debt funding of up to $1.8 billion through Hony Capital to partially finance the acquisition of Genworth. Oceanwide will continue to work on finalizing its financing plan.”
Once China Oceanwide finalizes the financing plan, it will then discuss currency conversion and transfer of funds with China’s State Administration of Foreign Exchange (SAFE), Genworth said.
Hony Capital is an arm of Legend Holdings of Beijing. Legend Holdings is best known in the United States for being the controlling shareholder of the Lenovo Group.
China Oceanwide has been trying to build a large office building in San Francisco. That project ran into delays. China Oceanwide reported Sunday that Hony Capital has agreed to pay up to $1.2 billion for the project, according to an article that appeared Tuesday in the San Francisco Chronicle.
— Read New Coronavirus Hangs Over China Oceanwide Affiliate’s Board Meeting, on ThinkAdvisor.