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Posted Sep 18, 2019, 8:05 AM
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Elite Member
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Join Date: Dec 2016
Location: San Francisco
Posts: 24,128
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Quote:
Originally Posted by mt_climber13
The first sign of catastrophe of Tariff Man?
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Not to get into a political debate about the need to confront China (concerning which our esteemed Congresswoman Ms Pelosi expressed agreement just yesterday on CNBC), there appears to be a lot going on with China Oceanwide besides tariffs that could effect this project in many ways:
Quote:
Genworth delays China Oceanwide merger to explore sale of Canada business
3rd July 2019 - Author: Matt Sheehan
Mortgage insurer Genworth Financial has announced a five-month extension to its planned merger agreement with China Oceanwide Holdings Group Co., Ltd., which will give it time to explore the sale of its Canadian business, Genworth MI Canada Inc.
MergerOceanwide, which had been set to acquire Genworth by June 30, 2019, gave its consent for Genworth to solicit interest in a potential disposition of the business, with a new merger deadline set for November 30.
The parties have decided to consider strategic alternatives for MI Canada due to a lack of progress in discussion on the transaction with Canadian regulators.
A potential disposition may be the best option given the absence of “any substantive guidance or likely timeframe for the completion of their review,” the companies said.
Once 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 accepted, the parties will seek to close the sale of MI Canada as promptly as possible, and the acquisition of Genworth Financial promptly thereafter.
However, if Oceanwide rejects the transaction, both parties will have the right to terminate their planned merger agreement.
“MI Canada is one of our top-performing businesses,” said Tom McInerney, President and CEO of Genworth. “However, the lack of transparent feedback or guidance from Canadian regulators about their review left us no choice but to look at strategic alternatives for MI Canada that would eliminate the need for Canadian regulatory approval of the Oceanwide transaction.”
“Another potential benefit of selling all or a portion of MI Canada would be the opportunity to use the proceeds to satisfy future debt maturities,” McInerney explained.
“The transaction with Oceanwide has taken longer than any of us anticipated and we owe it to our stockholders to close it as soon as possible,” he added. “However, an additional extension may be required to complete the potential disposition of MI Canada.”
“In the meantime, we are in discussions with other regulators about the disposition of MI Canada and its impact on the overall Oceanwide transaction.”
LU Zhiqiang, Chairman of Oceanwide, also commented: “Oceanwide remains committed to the transaction at the original purchase price of $5.43 per share. We also remain committed to the $1.5 billion contribution to Genworth, following the consummation of the transaction.
“We look forward to closing the transaction as soon as possible so that we can bring certainty to Genworth stockholders and begin to realize the benefits of our merger.”
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https://www.reinsurancene.ws/genworth-de...rger-to-explore-sale-of-canada-business/
and most recently
Quote:
Genworth Financial Announces Date of 2019 Annual Stockholders Meeting
RICHMOND, Va., Sept. 12, 2019 /PRNewswire/ -- Genworth Financial, Inc. (NYSE: GNW) today announced it will hold its 2019 Annual Meeting of Stockholders on December 12, 2019, if its proposed merger with China Oceanwide Holdings Group Co., Ltd. (Oceanwide) has not yet been completed. Genworth has scheduled its 2019 Annual Meeting to ensure that it remains in compliance with the New York Stock Exchange listing standards, which require each listed issuer to hold an annual meeting of stockholders during each calendar year.
In the event the proposed merger is not completed by December 12, 2019, the 2019 Annual Meeting will be held at 3 p.m. Eastern Standard Time at The Westin Richmond, 6631 West Broad Street, Richmond, Virginia, 23230. Holders of record of Genworth's Class A common stock on October 18, 2019, will be eligible to vote at the 2019 Annual Meeting. In the event the proposed merger is completed by December 12, 2019, the 2019 Annual Meeting will not be held . . . .
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http://newsroom.genworth.com/2019-09-12-...Date-of-2019-Annual-Stockholders-Meeting
For those who don't know, Genworth is the former (and much troubled) insurance arm of General Electric. China Oceanwide, the developer of Oceanwide Center has agreed to buy what's remaining of it, after it divests the Canadian subsidiary, for $2.7 billion but, as the above indicates, Canadian insurance regulators seem to be holding up the deal (and perhaps with good cause--Genworth wrote all sorts of Long-term Care policies that were apparently underpriced and are now causing it plenty of woe so that they may be concerned about the financial shenanigans or who gets what and where the LTC liabilities end up).
The relevance of all this is that what cash China Oceanwide Holdings has available and for what uses at any moment in time is a giant questionmark. We can hope their wheeling and dealing doesn't cause a shortfall in what's needed for thsee projects. But if not, it's about a whole lot more than tariffs.
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