Henrico County-based Genworth Financial Inc.’s planned $2.7 billion acquisition by China-based Oceanwide Holdings Group Co. Ltd. has been frozen.
In late November, the companies announced that Oceanwide’s acquisition of the Fortune 500 insurance company had been reapproved by China’s National Development and Reform Commission, and the acquisition, which has been frequently postponed since 2016, had been delayed until Dec. 31, 2020. On Monday both companies said that “the merger agreement remains in effect,” although the deadline was not extended.
But while the merger finalization remains in question, Genworth also announced Monday it would focus on its contingency plan — including a potential partial initial public offering (IPO) of the company’s mortgage insurance business. This would help the business meet its $1 billion in debt obligations due this year. Further details about the IPO have yet to be released, but the company announced Monday that Genworth CEO Tom McInerney will host a call at 8 a.m. on Tuesday to discuss the contingency plan.
