- Genworth Financial (NYSE:GNW) has agreed to be acquired by China Oceanwide (OTC:HHRBF), for about $2.7B overall -- $5.43/share in cash, about a 4.2% premium to Friday's close.
- China Oceanwide has also committed $600M of cash to address debt maturing in 2018 and $525M to the U.S. life insurance businesses (over and above $175M that Genworth Holdings committed to those businesses).
- The deal will be executed through one of China Oceanwide's investment platforms (Asia Pacific Global Capital Co.)
- The two say they have structured the deal with purpose to increase the likelihood of getting a regulatory OK.
- Genworth will separately take after-tax charges of $535M-$625M, unrelated to this transaction but tied to long-term insurance claim reserves and taxes.
- A half-hour conference call will come tomorrow at 8 a.m. ET to discuss the deal.