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Chinese group acquires mortgage insurer

A Beijing-based conglomerate has agreed to acquire a major LMI player with extensive Australian operations for $3.5 billion.

Beijing-based China Oceanwide Holdings Group and Genworth Financial today announced that they have entered into a definitive agreement under which China Oceanwide has agreed to acquire all of the outstanding shares of Genworth for a total transaction value of approximately US$2.7 billion ($3.5 billion), or $5.43 per share in cash.

A New York Stock Exchange trading update revealed that the acquisition will be completed through Asia Pacific Global Capital Co. Ltd., one of China Oceanwide's investment platforms. The transaction is subject to approval by Genworth's stockholders as well as other closing conditions, including the receipt of required regulatory approvals.

“The China Oceanwide transaction is the result of an active and extensive review process conducted over the past two years under the supervision of the board and with guidance from external financial and legal advisors,” James Riepe, non-executive chairman of the Genworth board of directors said.

“The board is confident that the sale of the company to China Oceanwide is the best path forward for Genworth's stockholders.”

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Upon the completion of the transaction, Genworth will be a standalone subsidiary of China Oceanwide and Genworth's senior management team will continue to lead the business from its current headquarters in Richmond, Virginia.

“Genworth intends to maintain its existing portfolio of businesses, including its MI (mortgage insurance) businesses in Australia and Canada,” the group said.

“Genworth's day-to-day operations are not expected to change as a result of this transaction.”

China Oceanwide is a privately-held, family-owned international financial holding group with diversified businesses including operations in financial services, energy, culture and media, and real estate assets globally, including in the United States. Businesses controlled by China Oceanwide have more than 10,000 employees globally.

More to come.

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