Genworth extends Chinese acquisition to March
$2.7B takeover by China Oceanwide Holdings Group was announced in 2016.
Henrico County-based Fortune 500 insurance company Genworth Financial Inc. has extended the timeline for its long-delayed $2.7 billion takeover by China Oceanwide Holdings Group Co. Ltd. until March 31, the company announced Monday, marking the 13th time the agreement has been extended.
On Dec. 12, Genworth sold its majority stake in its Canadian mortgage insurance company in order to clear the way for the acquisition by China Oceanwide Holdings Group, which has been in the works since 2016.
“The extension allows significant additional time for regulators to complete their review of updated information, including the recent sale of our Canadian mortgage insurance business, and for the NYDFS to review the results of our New York subsidiary’s annual assumption and margin reviews, which they have linked to their re-approval of the transaction,” Genworth President and CEO Tom McInerney said in a statement. “We continue to believe the transaction with Oceanwide provides the best, most certain value for Genworth stockholders.”
China Oceanwide Chairman Lu Zhiquiang said that despite the delays, his company remains fully committed to the transaction.
After Genworth receives its approvals, Oceanwide will need to receive clearance from China’s State Administration of Foreign Exchange for the currency conversion and transfer of funds.