Friday, January 8, 2021

No. 406: Genworth and Oceanwide—Recent Developments

The January 4 Genworth/Oceanwide Update
On October 21, 2016, Genworth Financial Inc, (Genworth) entered into a merger agreement with China Oceanwide (Oceanwide). Since then, the parties have entered into "waiver agreements," under which the parties extended the "end date" in the merger agreement. On October 1, 2020, Genworth said the parties had entered into a 16th waiver agreement under which they extended the end date to December 31, 2020. On January 4, 2021, Genworth and Oceanwide issued an update in which they said in part (the full update is in the complimentary package offered at the end of this post):
Given uncertainty around the completion and timing of the remaining steps required to close the transaction, Genworth and Oceanwide have not extended the current December 31, 2020 "end date" under the merger agreement. Oceanwide has indicated that the factors contributing to the delay since the parties agreed to their most recent extension of the merger agreement on November 30, 2020, were: (a) the finalization of the Hony Capital financing terms; and (b) the COVID-19 pandemic and associated restrictions. However, the merger agreement remains in effect, although either party is able to terminate the merger agreement at any time. Genworth has shared that it will continue to work towards closing the transaction, and Genworth remains open to completing the transaction if Oceanwide completes the remaining steps.
The January 4 Genworth News Release
On January 4, Genworth issued a news release announcing it will hold a special topics call with Genworth's CEO on January 5 at 8:00 a.m. to discuss the recent update relating to Oceanwide. Genworth said a replay of the call will be available until January 19 at (888) 203-1112 (U.S.) or (719) 457-0820 (outside the U.S.) The conference ID is # 3039080. The webcast will also be archived on the company's website for one year.

The January 4 Genworth 8-K Report
On January 4, Genworth filed an 8-K (significant event) report with the Securities and Exchange Commission. Among other things, the above mentioned January 4 Genworth/Oceanwide Update was included.

Available Material
I am offering a complimentary 8-page PDF consisting of the January 4 Genworth/Oceanwide Update (6 pages) and the January 4 Genworth News Release (2 pages). Email and ask for the January 2021 package relating to Genworth and Oceanwide.