China Oceanwide to buy U.S. insurer Genworth for $2.7 bln in cash

China Oceanwide Holdings

24/10/2016 02:58

HONG KONG, Oct 24 (Reuters) - China Oceanwide Holdings Group 
Co has agreed to buy U.S. insurer Genworth Financial Inc  GNW.N  
for $2.7 billion in cash, the latest in a series of moves by 
Chinese firms to buy overseas assets as their domestic economy 
slows and the yuan weakens. 
    Genworth said in a statement on Sunday that privately held 
and family-owned China Oceanwide Holdings will pay $5.43 per 
share, a modest 4.2 percent premium to Genworth's Friday closing 
price, to acquire all outstanding shares of the Richmond, 
Virginia-based company.  urn:newsml:reuters.com:*:nASC09CF3 
    But the Beijing-based company also agreed to commit another 
$1.12 billion towards Genworth debt maturing in 2018 and charges 
related to the life insurance business, the statement said. 
Genworth said it will booking preliminary charges of $400 
million to $450 million in relation to claims in its long-term 
care insurance business.  urn:newsml:reuters.com:*:nFWN1CR103 
    Genworth, which traces its roots back to 1871 and went 
public in 2004, has mortgage insurance operations in the Untied 
States, Canada and Australia, well as U.S. life insurance 
business.  
    China Oceanwide is a Beijing-based holding group founded by 
Chinese businessman Lu Zhiqiang. The company is also the 
controlling shareholder of Hong Kong-listed China Oceanwide 
Holdings Ltd  0715.HK , which had a market value of $1.6 billion 
as of Friday's close. 
    The parent group's operations span financial services, 
energy, culture and media, and real estate assets globally, 
employing more than 10,000 employees worldwide. 
    The transaction has been approved by the boards of the two 
companies, but subject to regulatory approvals and is likely to 
complete in mid-2017. 
 
 (Reporting by Denny Thomas; Editing by Kenneth Maxwell) 
 ((denny.thomas@thomsonreuters.com; +852 2843 6358; Reuters 
Messaging: denny.thomas.thomsonreuters.com@reuters.net)) 
 
Keywords: GENWORTH FINCL CHINA OCEANWIDE/