Genworth, Oceanwide Progress On Acquisition Funding, Extend Merger Agreement

(RTTNews) - Genworth Financial, Inc. (GNW) and China Oceanwide Holdings Group Co. Ltd announced Thursday that Oceanwide has reached a general agreement with Hony Capital on the key commercial terms and conditions of its $1.8 billion offshore financing plan to complete the acquisition of Genworth.

Oceanwide has also provided satisfactory information regarding its funding plan for the portion of the funds being sourced from Mainland China.

However, while Oceanwide has made significant progress towards finalizing its financing plan for the proposed transaction, it has not reached a final agreement with Hony Capital on all terms and conditions due to the logistical challenges presented by the global pandemic, including travel restrictions and mandatory quarantine requirements.

These challenges have significantly lengthened the time required for Oceanwide and Hony Capital to hold in-person discussions to finalize these terms and conditions.

As a result of these delays, the parties also today announced that they have agreed to a 16th waiver and agreement of each party's right to terminate their previously announced merger agreement. The 16th waiver extends the previous deadline of September 30, 2020 to no later than November 30, 2020.

Oceanwide has confirmed that Oceanwide's existing financing arrangement for debt funding of up to $1.8 billion through Hony Capital has been extended through December 31, 2020.

The transaction had previously received all U.S. regulatory approvals needed to close the transaction.