Genworth Financial and China Oceanwide Holdings Group have revealed that the latter’s acquisition of Genworth’s Delaware-domiciled insurer has received confirmation of the extension of the acceptance of filing from the Chinese National Development and Reform Commission (NDRC).
With the NDRC’s approval, Oceanwide can move forward with the remaining regulatory steps required to close its acquisition of Genworth. These steps include obtaining clearance for currency conversion, transfer of the balance of the transaction funds from SAFE, as well as attaining confirmation from the Delaware Department of Insurance that the acquisition of Genworth’s insurer in the state can proceed.
Both companies have stated that to allow for additional time for Oceanwide to meet the requirements, they are working on an extension of the waiver and agreement of each party’s right to terminate their previously announced merger agreement until not later than December 31, 2020. The companies are also working on a 90-day extension of each of the three US$500 million tranches under the post-close Oceanwide capital plan.
“We are encouraged that Oceanwide continues to make progress on the remaining steps needed to complete the transaction,” said Genworth president and CEO Tom McInerney. “Although I am disappointed we could not close by November 30, we are hopeful that we can close in the first half of December, but have agreed to an end date of December 31, 2020 to allow more time for the remaining regulatory approvals to be achieved.”
“Securing these last few remaining regulatory approvals and finalising our financing are important milestones in our efforts to close our transaction and fulfill our vision of bringing long-term care insurance to China,” added China Oceanwide chairman Lu Zhiqiang.