Genworth and Oceanwide Provide Update on CFIUS Application

10/02/17

RICHMOND, Va., Oct. 2, 2017 /PRNewswire/ — Genworth Financial, Inc. (NYSE: GNW) and China Oceanwide Holdings Group Co., Ltd. (Oceanwide) today reported that they have withdrawn their joint voluntary notice with the Committee on Foreign Investment in the United States (CFIUS), with an intent to refile the transaction with additional mitigation approaches, including potentially working with a U.S. third- party service provider. Both parties are fully committed to continuing to work on robust mitigation proposals.

CFIUS’ acceptance of the refiled joint voluntary notice would commence a new 30-day review period, which may be followed by an additional 45-day investigation period. Additional information about the CFIUS review process can be found in the definitive proxy statement filed by Genworth with the Securities and Exchange Commission on Jan. 25, 2017.

Genworth and Oceanwide intend to actively engage in discussions with CFIUS with respect to mitigation options; however, there can be no assurances that CFIUS will ultimately agree to clear a transaction between Genworth and Oceanwide on terms acceptable to the parties or at all.

“We continue to work diligently to secure all required regulatory approvals necessary to complete the transaction,” said Tom McInerney, president and CEO of Genworth.

“At the same time, we are evaluating options to address our upcoming debt maturities and preserve the value of our businesses in the event the transaction with Oceanwide cannot be completed,” said McInerney. “We have approximately $600 million of debt that matures in May 2018, with no additional maturities until 2020. Options to address the 2018 debt maturity in the absence of a transaction with Oceanwide include potential refinancing alternatives, current holding company cash, and/or potential asset sales. We are also evaluating options to insulate our U.S. mortgage insurance business from additional ratings pressure in the absence of a transaction with Oceanwide.”

LU Zhiqiang, chairman of Oceanwide, stated “Genworth remains a critical part of our strategy to bring long-term care and other insurance solutions to China, and we are therefore working hard with them to find ways to successfully complete the transaction as soon as possible.”
 

Genworth and Oceanwide Provide Update on CFIUS Application
 

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