Stephen Simpson, CFA • 31 Comments
Jonathan Booth, CFA • 227 Comments
Mon, Oct. 24, 11:15 AM
- What appears to be a hastily arranged weekend sale to China's Oceanwide Holdings Group for $5.43 per share in cash isn't getting much respect from investors, who have driven Genworth (GNW -8.1%) down to $4.89 in morning action today.
- Alongside the sale were more troubles at Genworth's long-term care unit, with the company saying it would increase LTC claim reserves by $400M-$450M after an annual review, resulting in an after-tax Q3 charge of $260M-$300M. The company will also book a non-cash charge of $275M-$325M related to deferred tax assets that are now not expected to be used prior to expiration.
- As part of the deal, China Oceanwide has agreed to pump in more than $1B into Genworth to address maturing debt and the LTC business.
- Previously: China Oceanwide buying Genworth Financial for $2.7B (Oct. 23)
Sun, Oct. 23, 6:17 PM
- 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.
Feb. 11, 2013, 12:00 PMGenworth (GNW +3.1%) is in talks to sell its wealth management business to two P-E firms, reports Reuters, with sources saying the deal would be valued at $400M-$450M. The business has been on the block since last fall, part of the company plan to raise capital and focus on its core business. | Feb. 11, 2013, 12:00 PM
Jan. 9, 2012, 12:39 PM
Genworth (GNW +0.8%) sells its tax and financial advisor unit to Cetera Financial Group for an undisclosed amount. The firm says the sale will allow it to refocus on its core asset management business within Genworth Financial Wealth Management.| Jan. 9, 2012, 12:39 PM
Sep. 29, 2011, 9:45 AM
Jun. 13, 2011, 12:04 PM
Aetna (AET) joins the increasing expansion into senior plans with a deal to buy a Medicare-supplement business from Genworth Financial (GNW +2.4%) for $290M. The unit will add 145,000 members to Aetna's rolls and had about $317M in net earned premium last year. (previously: WellPoint/CareMore)| Jun. 13, 2011, 12:04 PM