China Oceanwide plans to buy Genworth for $2.7 billion, according to a HousingWire
report. That’s about $5.43 per share in cash for oall of Genworth’s outstanding shares. The acquisition will be handled through Asa Pacific Global Capital, an investment platform owned by China Oceanwide.
As part of the deal, China Oceanwide will contribute $600 million to Genworth to address company debt that will mature in 2018, according to HousingWire. It will also contribute $175 million that Genworth Holdings previously committed to the life insurance business.
“The China Oceanwide transaction is the result of an active and extensive review process conducted over the past two years under the supervision of the board and with guidance from external financial and legal advisors,” said James Riepe, non-executive chairman of Genworth’s board of directors. “The board is confident that the sale of the company to China Oceanwide is the best path forward for Genworth’s stockholders.”
“Genworth is an established leader in both mortgage insurance and long term care insurance, which are markets that present significant long-term growth opportunities,” said Lu Zhiqiang, chairman of China Oceanwide. “We are impressed by Genworth's purpose and its focus on helping people manage the financial challenges of aging as well as achieving the dream of homeownership.”
If the deal is approved, Genworth will continue operations as a standalone subsidiary of China Oceanwide, HousingWire reported. Genworth’s senior management team will continue to lead the business.
China Oceanside Holdings Group, one of China’s largest companies, announced plans Monday to acquire Genworth Financial, one of the largest mortgage insurers in the United States.