GENWORTH FINANCIAL: Genworth and Oceanwide Extend Merger Agreement; Provide Update on Transaction with Oceanwide
Genworth Financial recently issued the following announcement.
Genworth Financial, Inc. (NYSE: GNW) and China Oceanwide Holdings Group Co. Ltd (Oceanwide) today announced they have agreed to a ninth waiver and agreement of each party's right to terminate the previously announced merger agreement. The ninth waiver and agreement extends the previous deadline of March 15, 2019 to April 30, 2019 in consideration of pending regulatory reviews.
Genworth and Oceanwide continue to diligently pursue approval by Canadian regulators of the transaction. As previously disclosed, the parties' discussions with the Canadian regulators have to date been focused on national security matters, including data protections and the safeguarding of our customers' personally identifiable information, consistent with the Enhanced Data Security Program that Genworth and Oceanwide have undertaken in connection with the clearance of the transaction by the Committee on Foreign Investment in the United States (CFIUS). While Genworth and Oceanwide have fully responded to all information requests to date, the Canadian regulators have not outlined a timeframe for the completion of their review of the transaction or requested any additional information at this time.
Should closing of the transaction extend past March 31, 2019, timing of the initial tranche of both the previously announced $1.5 billion Oceanwide post-closing capital plan and the $175 million post-closing capital commitment to Genworth Life Insurance Company (GLIC) from Genworth Holdings, Inc. would need to be adjusted. Genworth and Oceanwide intend to discuss any such adjustment with applicable regulators and Fannie Mae and Freddie Mac (GSEs).
Furthermore, to close the transaction, Oceanwide will need to receive clearance in China for currency conversion and the transfer of funds.
Approval by the U.S. Financial Industry Regulatory Authority (FINRA) also remains outstanding, but pursuant to FINRA rules, the transaction may proceed and closing may occur before such approval is obtained.
"Despite the delay in obtaining certain approvals, we remain committed to the transaction as illustrated by this merger agreement extension," said Tom McInerney, president and CEO of Genworth Financial. "We hope to be able to reach an agreement with Canada soon, and are diligently working through the impact of the deadline extension with certain regulators to close the transaction as soon as possible."
Said LU Zhiqiang, chairman of Oceanwide, "We remain committed to our transaction with Genworth, and are working to obtain the remaining outstanding regulatory approvals and clearances. We look forward to closing the transaction as soon as possible."
Original source: http://newsroom.genworth.com/2019-03-14-Genworth-and-Oceanwide-Extend-Merger-Agreement-Provide-Update-on-Transaction-with-Oceanwide