China Oceanwide Holdings Group Co has agreed to buy Genworth Financial Inc for USD 2.7 bn in cash, one of the recent moves by Chinese firms to buy overseas assets as their domestic economy slows and the yuan weakens.
Privately held and family-owned China Oceanwide Holdings will pay USD 5.43 per share, Genworth said in a statement. A Beijing-based company has also agreed to commit another USD 1.12 bn toward Genworth debt maturing in 2018 and charges related to the life insurance business, the statement said.
Genworth will be booking for preliminary charges of USD 400 million to USD 450 million in relation to claim in its long-term care insurance business.
Genworth traces its roots back to 1871 which went public in 2004, has mortgage insurance operations in the United States, Canada, and Australia, well as U.S. life insurance business.
The transaction has been approved by the boards both the companies which are subjected to regulatory approvals and is likely to complete in mid-2017.