Shares of mortgage insurer Genworth Financial (GNW) surged in early afternoon trading after the Delaware Department of Insurance, DDI, announced on Friday evening that it has scheduled a public hearing on Wednesday, November 28 on the proposed acquisition of control of Delaware-domiciled Genworth Life Insurance Company, GLIC, by entities affiliated with China Oceanwide Holdings Group in connection with the merger of Oceanwide and Genworth Financial. Genworth and Oceanwide have agreed that Genworth Holdings will contribute $175M to GLIC.

This $175M previously had been committed by Genworth to be used as partial consideration for unstacking Genworth Life and Annuity Insurance Company, GLAIC, from GLIC, which the parties decided not to pursue. The $175M will be contributed in three equal tranches, with the first contribution completed before the end of March 2019, the second contribution completed before the end of September 2019 and the final contribution completed by the end of January 2020. As a result of the contribution of the $175M from Genworth Holdings and the receipt of at least $200M from the purchase by GLAIC of the Genworth Holdings note, GLIC will have improved liquidity by $375M.

PUBLIC HEARINGS SET: “We are pleased that the hearing has been scheduled and look forward to highlighting the benefits of the merger to our policyholders”, said Tom McInerney, president, and CEO of Genworth. Added Lu Zhiqiang, chairman of Oceanwide: “We are very pleased that Delaware has set the public hearing for November 28 and look forward to closing the transaction in the fourth quarter”. In addition to approval by the state of Delaware, the closing of the transaction remains subject to other conditions, including the receipt of other required regulatory approvals in the U.S., China, and other international jurisdictions. Genworth and Oceanwide are actively engaged with the relevant regulators regarding their pending applications, the companies said.

Print Friendly, PDF & Email

Related Posts