RICHMOND, Va., June 9, 2018 /PRNewswire/ -- China Oceanwide
Holdings Group Co., Ltd. (Oceanwide) and Genworth Financial, Inc.
(NYSE: GNW) today announced that the Committee on Foreign
Investment in the United States
(CFIUS) has completed its review of their proposed transaction and
concluded that there are no unresolved national security concerns
with respect to the proposed transaction. This satisfies one
of the conditions to the closing of the proposed
transaction.
In connection with the CFIUS review of the proposed transaction,
Genworth and Oceanwide entered into a mitigation agreement which,
among other things, requires Genworth to use a U.S.-based,
third-party service provider to manage and protect the personal
data of Genworth's U.S. policyholders.
The closing of the transaction remains subject to other
conditions, including the receipt of required regulatory approvals
in the U.S., China and other international jurisdictions. Genworth
and Oceanwide are engaging with the relevant regulators regarding
the pending applications.
"We are pleased that CFIUS has completed its review of our
transaction and look forward to working with Oceanwide to obtain
the remaining regulatory approvals needed and satisfy other
conditions necessary to close the transaction as soon as possible,"
said Tom McInerney, president and
CEO of Genworth.
Added LU Zhiqiang, chairman of Oceanwide: "Successfully
concluding the CFIUS process is a major step in our efforts to
complete this transaction, which will strengthen Genworth's
financial position and allow us to bring Genworth's insurance
expertise to China."
About Genworth Financial
Genworth Financial, Inc.
(NYSE: GNW) is a Fortune 500 insurance holding company committed to
helping families achieve the dream of homeownership and address the
financial challenges of aging through its leadership positions in
mortgage insurance and long term care insurance. Headquartered
in Richmond, Virginia, Genworth
traces its roots back to 1871 and became a public company in
2004. For more information, visit genworth.com.
From time to time, Genworth releases important information via
postings on its corporate website. Accordingly, investors and other
interested parties are encouraged to enroll to receive automatic
email alerts and Really Simple Syndication (RSS) feeds regarding
new postings. Enrollment information is found under the "Investors"
section of genworth.com. From time to time, Genworth's
publicly traded subsidiaries, Genworth MI Canada Inc. and Genworth
Mortgage Insurance Australia Limited, separately release financial
and other information about their operations. This information can
be found at http://genworth.ca and
http://www.genworth.com.au.
About China Oceanwide
China Oceanwide is a privately
held, family owned international financial holding group founded by
Mr. LU Zhiqiang. Headquartered in Beijing, China, China Oceanwide's
well-established and diversified businesses include operations in
financial services, energy, culture and media, and real estate
assets globally, including in the United
States.
China Oceanwide is the controlling shareholder of the
Shenzhen-listed Oceanwide Holdings
Co., Ltd. and Minsheng Holdings Co. Ltd.; the Hong Kong-listed China Oceanwide Holdings
Limited; the privately-held Minsheng Securities, Minsheng Trust,
and Asia Pacific Property & Casualty Insurance; and it is the
single largest shareholder of Australia-listed CuDECO Ltd. China Oceanwide
also is a minority investor in Shanghai-listed China
Minsheng Bank and Hong
Kong-listed Legend Holdings. In the United States, China Oceanwide has real
estate investments in New York,
California, and Hawaii. Businesses controlled by China
Oceanwide have more than 10,000 employees globally.
Cautionary Note Regarding Forward-Looking
Statements
This communication includes certain statements that may
constitute "forward-looking statements" within the meaning of the
federal securities laws, including Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking
statements may be identified by words such as "expects," "intends,"
"anticipates," "plans," "believes," "seeks," "estimates," "will" or
words of similar meaning and include, but are not limited to,
statements regarding the closing of the transaction and obtaining
relevant regulatory approvals. Forward-looking statements are based
on management's current expectations and assumptions, which are
subject to inherent uncertainties, risks and changes in
circumstances that are difficult to predict. Actual outcomes and
results may differ materially from those in the forward-looking
statements and factors that may cause such a difference include,
but are not limited to, risks and uncertainties related to:
(i) the risk that the transaction may not be completed in a
timely manner or at all, which may adversely affect Genworth's
business and the price of Genworth's common stock; (ii) the
parties' inability to obtain regulatory approvals, or the
possibility that regulatory approvals may further delay the
transaction or will not be received prior to July 1, 2018 (and either or both of the parties
may not be willing to further waive their End Date termination
rights beyond July 1, 2018) or that
materially burdensome or adverse regulatory conditions may be
imposed in connection with any such regulatory approvals (including
those conditions that either or both of the parties may be
unwilling to accept); (iii) the risk that a condition to
closing of the transaction may not be satisfied;
(iv) potential legal proceedings that may be instituted
against Genworth following announcement of the transaction;
(v) the risk that the proposed transaction disrupts Genworth's
current plans and operations as a result of the announcement and
consummation of the transaction; (vi) potential adverse
reactions or changes to Genworth's business relationships with
clients, employees, suppliers or other parties or other business
uncertainties resulting from the announcement of the transaction or
during the pendency of the transaction, including but not limited
to such changes that could affect Genworth's financial performance;
(vii) certain restrictions during the pendency of the
transaction that may impact Genworth's ability to pursue certain
business opportunities or strategic transactions;
(viii) continued availability of capital and financing to
Genworth before the consummation of the transaction;
(ix) further rating agency actions and downgrades in
Genworth's financial strength ratings; (x) changes in
applicable laws or regulations; (xi) Genworth's ability to
recognize the anticipated benefits of the transaction;
(xii) the amount of the costs, fees, expenses and other
charges related to the transaction; (xiii) the risks related
to diverting management's attention from Genworth's ongoing
business operations; (xiv) the impact of changes in interest
rates and political instability; and (xv) other risks and
uncertainties described in the Definitive Proxy Statement, filed
with the SEC on January 25, 2017, and Genworth's Annual Report
on Form 10-K, filed with the SEC on February 28, 2018.
Unlisted factors may present significant additional obstacles to
the realization of forward-looking statements. Consequences of
material differences in results as compared with those anticipated
in the forward-looking statements could include, among other
things, business disruption, operational problems, financial loss,
legal liability to third parties and similar risks, any of which
could have a material adverse effect on Genworth's consolidated
financial condition, results of operations, credit rating or
liquidity. Accordingly, forward-looking statements should not be
relied upon as representing Genworth's views as of any subsequent
date, and Genworth does not undertake any obligation to update
forward-looking statements to reflect events or circumstances after
the date they were made, whether as a result of new information,
future events or otherwise, except as may be required under
applicable securities laws.
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SOURCE Genworth Financial, Inc.