Genworth And Chinese Firm Refile For Merger

Henrico County-based Genworth Financial Inc. said Tuesday it will take steps to address its upcoming debt maturity of about $600 million as it again seeks approval from government regulators to be acquired by a China-based company.

Genworth, an insurance company with thousands of employees in Virginia, and China Oceanwide Holdings Group Co. Ltd. said they have refiled their joint voluntary notice with the Committee on Foreign Investment in the United States, a multiagency panel that reviews foreign acquisitions of U.S. companies.

The committee, which in January blocked one other high-profile acquisition of a U.S. company by a Chinese firm, has raised concerns about the security of U.S. citizens' private data in the Genworth deal. Genworth said in December it was developing a "mitigation approach" in which its customers' personal information would remain under the control of a U.S.-based third-party administrator.

Genworth first announced it had agreed to be acquired by China Oceanwide for $2.7 billion in October 2016. Genworth shareholders approved the deal in March, but it has since been delayed because of scrutiny by government regulators.

The deal also remains under review by the Delaware Department of Insurance, which Genworth said is "due to the difference in opinion of the fair market value for Genworth Life and Annuity Insurance Company."

Genworth said that because of delays, it has decided to pursue a secured debt transaction to address its debt maturity of $600 million, which matures in May 2018. It has no additional debt maturities until 2020.

More details about the secured debt transaction would be made available soon, the company said.

[email protected](804) 775-8123