China Oceanwide Holdings Group Co. Ltd. has agreed to pay $5.43 per share in cash for Genworth Financial.
Completing the deal would give Genworth — a Richmond, Virginia-based seller of long-term care insurance, mortgage guaranty insurance and annuities — a value of about $2.7 billion, Genworth said Sunday.
China Oceanwide, a family-owned, Beijing-based real estate developer, has also agreed to provide $525 million in cash for Genworth's U.S. life insurance businesses, and $600 million in cash Genworth can use to refinance or retire notes set to mature in 2018.
The deal is subject to approval by Genworth's stockholders as well as by insurance regulators. The companies hope to complete the deal by mid-2017.
China Oceanwide was founded in 1985 by Lu Zhiqiang. It now owns a securities broker, a wealth management unit and Asia Pacific P&C Insurance as well as the real estate development business. The company would make the Genworth deal through its Asia Pacific Global Capital Co. Ltd. investment company unit.
"Genworth's day-to-day operations are not expected to change as a result of this transaction," Genworth said.
China Oceanwide would operate Genworth as a stand-alone subsidiary, and Genworth's senior management team would continue to run the business from the current offices in Richmond, Genworth said.
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