SPY326.54-3.44 -1.04%
DIA265.06-1.53 -0.57%
IXIC10,911.59-274.00 -2.45%

Genworth Announces Merger Agreement Extension To September 30, Steps To Enhance Liquidity

RICHMOND, Va., June 30, 2020 /PRNewswire/ --Genworth Financial, Inc. (NYSE:GNW) announced today that it is moving forward with plans to address its near-term liabilities and financial obligations, and maximize

Benzinga · 06/30/2020 11:12

RICHMOND, Va., June 30, 2020 /PRNewswire/ --Genworth Financial, Inc. (NYSE:GNW) announced today that it is moving forward with plans to address its near-term liabilities and financial obligations, and maximize shareholder value while China Oceanwide Holdings Group Co., Ltd. (Oceanwide) finalizes its funding plan for the acquisition of Genworth. Genworth and Oceanwide also announced that they have agreed to a 15th waiver and agreement of each party's right to terminate the previously announced merger agreement. The 15th waiver extends the previous deadline of June 30, 2020 to no later than September 30, 2020.

Given the delay in the closing of the China Oceanwide transaction, Genworth is taking steps to address its near-term liabilities, which include liabilities arising under the pending AXA litigation and approximately $1.0 billion in debt maturing in 2021. Genworth expects these steps to include a debt offering in the near term and taking the necessary steps to launch a 19.9 percent IPO of its U.S. Mortgage Insurance business, subject to market conditions, in the event the China Oceanwide transaction is terminated.

The extension gives Oceanwide additional time to finalize the financing for the transaction purchase price of $5.43 per share, which may include debt funding of up to $1.8 billion through Hony Capital and/or other third parties. Oceanwide has indicated that the financing has been delayed due to the COVID-19 pandemic and uncertain macroeconomic conditions.