Genworth Financial Inc. says China Oceanwide Holdings Group Co. Ltd. of Beijing is having trouble nailing down the financing it needs to pay to acquire Genworth.
China Oceanwide — a financial services and real estate development company based in Beijing — has been trying to acquire Genworth for about four years. The company is in the process of closing on a $1.8 billion financing arrangement from Hony Capital, a big, Hong Kong-based private equity firm.
"Oceanwide has indicated that the financing has been delayed due to the COVID-19 pandemic and uncertain macroeconomic conditions," Genworth said in a comment included in the financing delay announcement.
China Oceanwide has major developments in the center of Wuhan, which was hit especially hard by the COVID-19 outbreak.
Genworth and China Oceanwide said they will push the deal completion deadline back to Sept. 30, from June 30.
The extension is the 15th the companies have announced.
Genworth is a Richmond, Virginia-based company that is a large player in the mortgage insurance markets in the United States and Australia.
It sells some stand-alone long-term care insurance (LTCI), and it has been a major player in the life, annuity and LTCI markets.
The company has $1 billion in debt coming due in 2021 and potential liabilities related to litigation with AXA.