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Genworth Financial sold to Chinese business

Posted at 7:22 AM, Oct 24, 2016
and last updated 2016-10-24 10:12:22-04

HENRICO COUNTY, Va. — A local Fortune 500 company is being taken private and into the arms of a Chinese conglomerate.

Genworth Financial, a Henrico-based insurance giant, has struck a deal to be acquired by China Oceanwide Holdings Group in an all-cash transaction valued at $2.7 billion, the companies announced Sunday evening.

China Oceanwide, which is privately held, will allow Genworth to operate as a “standalone subsidiary” with its senior management team expected to continue in place in Richmond, which will remain the company’s headquarters. It said its day-to-day operations are not expected to change.

Genworth shareholders will receive $5.43 per share in cash. The company’s stock closed Friday at $5.21 per share and has been on an uptick since the summer, after bottoming out at $1.61 in February.

The deal will bring a wave of cash into Genworth, which is known for its mortgage, long-term care and life insurance. It has struggled in recent years with predicting claims in its long-term care division and earlier this year announced it was restructuring its U.S. life insurance businesses by suspending sales of traditional life insurance and fixed annuity products after the first quarter.

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