Brief: China Oceanwide to acquire Genworth financial for about $2.7 bln

China Oceanwide Holdings

23/10/2016 23:00

Oct 23 (Reuters) - Genworth Financial Inc  GNW.N  
    * China oceanwide to acquire genworth financial 
    * Genworth financial- china oceanwide has agreed to acquire 
all of outstanding shares of genworth for total transaction 
value of approximately $2.7 billion 
    * China oceanwide to acquire genworth financial- $5.43 per 
share all-cash transaction 
    * Transaction is subject to approval by genworth's 
stockholders 
    * As part of deal, china oceanwide has additionally 
committed to contribute to genworth $600 million of cash to 
address debt maturing in 2018 
    * Preliminary charges unrelated to this transaction of $535 
to $625 million after-tax associated with long term care 
insurance claim reserves and taxes 
    * China oceanwide transaction is expected to mitigate 
negative impact of these charges 
    * Upon completion of deal, genworth will be standalone 
subsidiary of china oceanwide 
    * Genworth's senior management team will continue to lead 
business from its current headquarters in richmond, virginia 
    * Day-To-Day operations are not expected to change as a 
result of this transaction 
    * Goldman, sachs & co. And lazard are acting as financial 
advisors to genworth 
    * Citi and willis capital markets & advisory are acting as 
financial advisors to china oceanwide and sullivan 
    * $1.1 billion in additional capital commitment by china 
oceanwide enables debt reduction and cash infusion to u.s. Life 
insurance businesses 
 
Source text for Eikon:  ID:nPn1nSm0a  
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