Genworth and China Oceanwide deal delayed again; Alternatives for MI Canada unit being explored

Genworth and China Oceanwide announced they agreed to an 11th waiver and agreement of each party's right to terminate the previously announced merger agreement beyond the deadline of June 30, 2019.

In conjunction with the extension, Genworth has received Oceanwide's consent to solicit interest in a potential disposition of its interest in Genworth MI Canada Inc. (MI Canada).  The parties decided to consider strategic alternatives for MI Canada as a result of the absence of any substantive progress in discussions on the transaction with Canadian regulators. 

The newest merger agreement deadline should give Oceanwide and Genworth sufficient time for the parties to explore disposition options for MI Canada. If Genworth identifies a suitable transaction for MI Canada, Oceanwide will have the right to accept or reject the terms of the MI Canada transaction.  If Oceanwide accepts the terms, the parties will seek to close the sale of MI Canada as promptly as possible, and the acquisition of Genworth Financial concurrently or promptly thereafter.  However, in the event Oceanwide rejects the MI Canada sale transaction, the parties will each have the right to terminate the Oceanwide acquisition of Genworth Financial at that time.

The Oceanwide transaction will still require clearance in China for currency conversion.  Updates will be provided as part of Genworth's second quarter earnings report, or sooner, depending on developments.   

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