Beijing-based China Oceanwide Holdings has agreed to buy US insurance giant
Genworth Financials for $2.7 billion.
China Oceanwide is the key shareholder of China Minsheng Bank and has offered $5.43 per share for all of Genworth’s outstanding shares in an all-cash transaction, the two companies announced over the weekend.
Genworth has around four million life insurance customers. It also has interests in mortgage insurance products.
"Genworth is an established leader in both mortgage insurance and long-term care insurance," China Oceanwide chairman Lu Zhiqiang stated. "We are providing crucial financial support to Genworth’s efforts to restructure its US life insurance business."
The Chinese firm also committed to providing an additional $600 million to Genworth to address debt set to mature in 2018, and $525 million in additional capital for its life insurance business.
Tom Mclnerney, Genworth president and chief executive officer, said the agreement is in the best interests of the Virginia-based insurer’s shareholders.
Genworth will become a subsidiary of China Oceanwide upon the deal’s completion by mid-2017 with shareholder approval.
China Oceanwide has been on a buying binge on US properties as it also made investments in San Francisco and Los Angeles developments.
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