Pursuits
China Oceanwide Agrees to Buy Genworth for $2.7 Billion Cash
- Genworth to get $1.1 billion to manage debt, strengthen units
- Buyer’s chairman: ‘We are providing crucial financial support’
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China Oceanwide Holdings Group Co. agreed to buy Genworth Financial Inc. for $2.7 billion in cash, pledging to help the U.S. firm manage its debt and strengthen life insurance units after it was hurt by higher-than-expected losses tied to long-term care coverage.
A China Oceanwide investment platform will pay $5.43 per share, the companies said Sunday in a statement. That’s 4.2 percent more than Genworth’s closing price of $5.21 Friday. The buyer also promised to provide $600 million to Genworth to address debt maturing in 2018, as well as $525 million to strengthen the life insurance businesses.