Genworth Financial To Be Acquired By Beijing-Based Holding Company

Genworth Financial, one of the largest providers of private mortgage insurance in the U.S. through its Genworth MI subsidiary, is being acquired by China Oceanwide Holdings, a global holdings company headquartered in Beijing, for about $2.7 billion, or $5.43 per share, in an all-cash transaction.

Company officials at Genworth say the acquisition will provide shareholders with greater value than other actionable alternatives. What’s more, the company will gain $1.1 billion in additional capital that will enable it to reduce its debt.

The acquisition, which will be completed through Asia Pacific Global Capital Co. Ltd., one of China Oceanwide’s investment platforms, is still subject to approval by Genworth’s stockholders, as well as other closing conditions, including the receipt of required regulatory approvals.

In a release, James Riepe, non-executive chairman of the Genworth board of directors, says the acquisition “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.”

“The board is confident that the sale of the company to China Oceanwide is the best path forward for Genworth’s stockholders,” Riepe says.

Upon the completion of the transaction, Genworth will be a stand-alone subsidiary of China Oceanwide.

Genworth’s senior management team will continue to lead the business from its current headquarters in Richmond, Va.

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