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China's Oceanwide Holdings Group Co. is set to procure Genworth Financial in a $2.7 billion cash deal. Oceanwide will pay $5.43 per share to acquire all the U.S. insurer's outstanding shares. The purchase price is 4.2% higher than Genworth's last closing price.
Genworth's shares added 1.9% on Monday on the report of the takeover.
The acquisition is the latest in a series of undertakings by Chinese firms' to acquire assets abroad as their domestic economy slumps and as the yuan depreciates. So far, Chinese firms have been engaged in a record $181 billion overseas mergers and acquisitions (M&A), 70% more than the total of last year.
In a joint statement, the companies also announced on Sunday that Oceanwide also agreed to pledge another $1.12 billion for Genworth debt set to mature in 2018 and life insurance claims charges. The agreement, which was approved by both the companies' boards,still requires regulatory approvals and most likely will not be closed before mid-2017.
