RICHMOND, Go. and BEIJING, October 1, 2020 /PRNewswire/ — Genworth Financial, Inc. (NYSE: GNW) and China Oceanwide Holdings Group Co. Ltd.(Oceanwide) announced today that Oceanwide has entered into a general agreement with Hony Capital on key terms of its $1.8 billion offshore financing plan to complete the acquisition of Genworth and that Oceanwide has provided satisfactory information on its financing plan for the financing portion of China. The proposed merger has all the administrative approvals in the United States necessary to conclude, the U.S. insurance holding company said. Genworth Financial stated that its board of directors and management team found that the Chinese company provided them with satisfactory information about its financing plan for the purchase price consideration. The U.S. insurer then decided not to exercise its right to terminate the merger agreement on August 31, 2020.
Tom McInerney, President and CEO of Genworth, added: „As we reiterate the waiver and agreement, it is important to remember that it was not until the end of March 2020 that we received essentially all the necessary administrative approvals to complete the transaction. Oceanwide was therefore in a difficult position to complete the financing process in the midst of a global pandemic. I recognize that it has been an extremely long road for our shareholders, regulators, employees and other stakeholders, and we greatly appreciate their patience. We are committed to continuing to work with Oceanwide to complete the transaction as we believe the transaction is the best value for Genworth shareholders. Although Oceanwide has made significant progress in completing its financing plan for the proposed transaction, it has not reached a final agreement with Hony Capital on all conditions due to the logistical challenges posed by the global pandemic, including travel restrictions and mandatory quarantine requirements. These challenges significantly lengthened the time it took Oceanwide and Hony Capital to hold face-to-face conversations to finalize these conditions.