Genworth Financial, Inc. (NYSE: GNW) and China Oceanwide Holdings Group Co., Ltd. (Oceanwide) today announced they have agreed to a fifth waiver and agreement of each party's right to terminate the previously announced merger agreement. The fifth waiver and agreement extends the previous deadline of July 1, 2018 to August 15, 2018 to allow additional time for continued regulatory review of the transaction.
The extension will also allow Oceanwide and Genworth to further develop the previously announced new capital investment plan whereby Oceanwide would contribute an aggregate of $1.5 billion to Genworth over time following the closing of the transaction. The contribution would be used to further improve Genworth's financial stability, which could include retiring Genworth's debt due in 2020 and 2021 or enabling future growth opportunities. As previously announced, the parties are seeking approval of a transaction with no unstacking of Genworth Life and Annuity Insurance Company from Genworth Life Insurance Company, and Genworth's debt obligations due May 2018were refinanced with the proceeds from a term loan and cash on hand. As a result, Oceanwide will no longer make the previously committed capital contributions that were intended to facilitate the unstacking and address Genworth's 2018 debt maturity.
Genworth and Oceanwide continue to work closely with regulators who must approve the transaction in the U.S., China and other international jurisdictions in which Genworth does business.
"Genworth and Oceanwide continue to be committed to the transaction and are pleased to have turned our attention to obtaining the remaining regulatory approvals, now that the Committee on Foreign Investment in the United States has completed its review of our transaction," said Tom McInerney, president and CEO of Genworth. "We recognize this process will likely extend beyond August 15."
Added LU Zhiqiang, chairman of Oceanwide: "We are encouraged by the good progress we are making and are focused on working with Genworth to obtain the remaining required regulatory approvals, with the goal of closing the transaction as soon as possible."
About Genworth Financial
Genworth Financial, Inc. (NYSE: GNW) is a Fortune 500 insurance holding company committed to helping families achieve the dream of homeownership and address the financial challenges of aging through its leadership positions in mortgage insurance and long term care insurance. Headquartered in Richmond, Virginia, Genworth traces its roots back to 1871 and became a public company in 2004. For more information, visit genworth.com.
From time to time, Genworth releases important information via postings on its corporate website. Accordingly, investors and other interested parties are encouraged to enroll to receive automatic email alerts and Really Simple Syndication (RSS) feeds regarding new postings. Enrollment information is found under the "Investors" section of genworth.com. From time to time, Genworth's publicly traded subsidiaries, Genworth MI Canada Inc. and Genworth Mortgage Insurance Australia Limited, separately release financial and other information about their operations. This information can be found at http://genworth.ca and http://www.genworth.com.au.
About Oceanwide
Oceanwide is a privately held, family owned international financial holding group founded by LU Zhiqiang. Headquartered in Beijing, China, Oceanwide's well-established and diversified businesses include operations in financial services, energy, culture and media, and real estate assets globally, including in the United States.
Oceanwide is the controlling shareholder of the Shenzhen-listed Oceanwide Holdings Co., Ltd. and Minsheng Holdings Co. Ltd.? the Hong Kong-listed China Oceanwide Holdings Limited and China Oceanwide International Financial Limited, (formerly known as Quam Limited)? the privately-held Minsheng Securities, Minsheng Trust, and Asia Pacific Property & Casualty Insurance? and it is the single largest shareholder of Australia-listed CuDECO Ltd. China Oceanwide also is a minority investor in Shanghai-listed China Minsheng Bank and Hong Kong-listed Legend Holdings. In the United States, Oceanwide has real estate investments in New York, California, and Hawaii. Businesses controlled by Oceanwide have more than 10,000 employees globally.
