The reason the company ended the China Oceanwide Deal raises the possibility that Genworth has developed an additional strategy to raise funds. James Riepe, Non-Executive Chairman of Genworth`s Board of Directors, said: “Genworth`s Board of Directors has concluded that Oceanwide will not be able to complete the proposed transaction within a reasonable period of time and that more clarity is now needed on Genworth`s future so that the Company can implement its plans to maximize shareholder value. Therefore, the Board of Directors has decided to terminate the Oceanwide merger agreement. In March 2020, the companies announced that the merger could be further delayed due to operational disruptions due to the COVID-19 pandemic, before announcing a deadline of September 30, 2020 at the latest at the end of June. Following confirmation of the new merger date, it was announced that Oceanwide has entered into an agreement with Hony Capital on the key commercial terms of its $1.8 billion offshore financing plan to complete the acquisition of Genworth. Seifert wrote in a comment that she expected the contract to be terminated. Yesterday, however, Genworth said it had exercised its right to terminate its merger agreement with China Oceanwide. China Oceanwide – a real estate developer and financial services company – has been trying to acquire Genworth for more than four years. The companies have extended the closing date of the agreement 17 times.
In January, the companies switched to a merger agreement with no expiration date. The four-year deal of China Oceanwide Holdings Group Co., Genworth Financial Inc., one of the world`s longest transaction commitments, is drying up. The Richmond, Virginia-based insurer said it had terminated a merger agreement with the Beijing-based company. Genworth Financial Inc has terminated a $2.7 billion buyout deal with investment firm China Oceanwide Holdings Group Co, the U.S. insurer said Tuesday. In December, the couple received confirmation of acceptance of the request from China`s National Development and Reform Commission (NDRC), which appeared to bring the merger closer to finalization. Cautionary Note Regarding Forward-Looking Statements This press release contains certain statements that may constitute “forward-looking statements” within the meaning of the Federal Securities Act, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can be identified by words such as “expects”, “intends”, “anticipates”, “plans”, “believes”, “seeks”, “estimates”, “will” or words of similar meaning and include, without limitation, statements regarding transactions that Genworth pursues to meet its current liabilities and financial obligations that involve additional debt financing and/or transactions to sell a percentage of its interests in its mortgage insurance business in the United States. and a future partnership with Oceanwide to offer insurance products in China.
Forward-looking statements are based on management`s current expectations and assumptions, which are subject to uncertainties, risks and inherent changes in circumstances that are difficult to predict. Actual results may differ materially from those in the forward-looking statements, and factors that may cause such a discrepancy include, but are not limited to, the risks and uncertainties associated with: (i) the risk that Genworth`s decision to terminate the merger agreement will affect Genworth`s business, the price of Genworth`s common shares and Genworth`s ability to: The continuation of these alternative transactions could affect the risk that Genworth will not be able to meet its current financial liabilities and obligations, including the risks that it will not be able to raise additional debt funds and/or sell a percentage of its interest in its mortgage insurance business in the United States to repay the promissory note to AXA S.A. significant additional impediments to the implementation of forward-looking statements. The consequences of material differences in earnings from those anticipated in the forward-looking statements could include, but are not limited to, business interruptions, operational problems, financial losses, legal liability to third parties and similar risks, each of which could have a material adverse effect on the consolidated financial condition, results of operations, genworth`s solvency or liquidity. Accordingly, we caution you not to place undue reliance on forward-looking statements. In addition, forward-looking statements should not be relied upon to reflect Genworth`s views at a later date, and Genworth assumes no obligation to update any forward-looking statements to reflect events or circumstances subsequent to the date of their disclosure, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Genworth said he decided to terminate the merger deal instead of sticking to the perpetual deal to simplify efforts to implement the company`s strategic plan. Part of the plan is to sell a stake in a major mortgage insurance subsidiary to investors through a partial IPO. About Genworth FinancialGenworth Financial, Inc. (NYSE: GNW) is a Fortune 500 insurance holding company dedicated to helping families realize the dream of owning a home and meet the financial challenges of aging through their leadership positions in mortgage and long-term care insurance. Headquartered in Richmond, Virginia, Genworth dates back to 1871 and became a publicly traded company in 2004.
For more information, see genworth.com. RICHMOND, Va., April 6, 2021 /PRNewswire/ — Genworth Financial, Inc. (NYSE: GNW) (Genworth, the Company) announced today that it has exercised its right to terminate its merger agreement with China Oceanwide Holdings Group Co., Ltd. (Oceanwide) effective April 6, 2021. Termination of the agreement will allow Genworth to pursue its revised strategic plan without restrictions and uncertainty as to its final ownership, which could affect the Company`s ability to successfully execute the plan. Originally proposed in October 2016, the merger was blocked for years due to concerns about Chinese access to sensitive data held by U.S. citizens. From time to time, Genworth may post important information about publications on its corporate website. As a result, investors and other interested parties are encouraged to sign up to receive automatic email notifications and RSS (Really Simple Syndication) feeds on new publications. Information on how to register can be found in the “Investors” section of genworth.com. “Genworth`s Board of Directors has concluded that Oceanwide will not be able to complete the proposed transaction within a reasonable period of time and that there is now a need for further clarity on Genworth`s future so that the Company can implement its plans to maximize shareholder value. Therefore, the Board of Directors has decided to terminate the Oceanwide Merger Agreement,” said James Riepe, Non-Executive Chairman of Genworth`s Board of Directors.
“While I am disappointed after more than four years of effort, I would particularly like to thank our shareholders, regulators, policyholders, customers and their employees for their patience and support as we all endured a particularly long and arduous cross-border approval process.” Genworth Financial Inc. announced Tuesday that it has officially ended its efforts to acquire China Oceanwide Holdings Group Co. Ltd. “We are grateful for Oceanwide`s commitment to our proposed transaction over the years,” said Tom McInerney, Genworth`s president and chief executive officer. .