China Oceanwide agrees to buy Genworth for US$2.7b in cash

[SHANGHAI] China Oceanwide Holdings Group Co agreed to buy Genworth Financial Inc. for US$2.7 billion cash while helping the US company manage debt and bolster its life insurance businesses.

A China Oceanwide investment platform will pay US$5.43 per share and keep Genworth as a standalone subsidiary still led from Richmond, Virginia, by its own senior management team, the companies said Sunday in a statement.

Separately, China Oceanwide promised to contribute US$600 million to Genworth to address debt maturing in 2018, on or before its maturity, as well as US$525 million to strengthen the life insurance businesses.

BLOOMBERG