Thomas McInerney (Photo: Victor J. Blue/BB)
China Oceanwide Holdings Group Co. Ltd. may be about to get a step closer to completing its proposed acquisition of Genworth Financial Inc.
The Delaware Department of Insurance has agreed to hold a public hearing on China Oceanwide's application to acquire a key Genworth subsidiary, Genworth Life Insurance Company (GLIC) Nov. 28.
China Oceanwide has been trying to acquire Genworth since October 2016.
GLIC has written much of Genworth's long-term care insurance. Genworth Life and Annuity Insurance Company (GLAIC), a GLIC subsidiary, has written many of Genworth's annuities.
Genworth had hoped to make the China Oceanwide-Genworth deal more appealing by unstacking GLAIC from GLIC. Regulators in Delaware objected.
Genworth executives have given up on the idea of unstacking GLAIC from GLIC. Now, Genworth and China Oceanwide have agreed that a Genworth unit will contribute $175 million to GLIC, rather than using the $175 million to unstuck GLAIC from GLIC, according to a Genworth announcement of the Delaware hearing date.
Genworth would make one portion of the payment before the end of March, one before the end of September, and one by the end of January 2020, Genworth says.
Genworth has also agreed that GLAIC will put about $200 million into GLIC, by buying a $200 millio promissory note from GLIC. "The purchase price will be at fair market value but not less than $200 million," Genworth says in the announcement. "No changes will be made to the terms of the existing obligation under such promissory note."
