Genworth parent deal ‘no impact’ on operations

The parent of ASX-listed Genworth Australia has been bought out by China Oceanwide in a deal worth $3.5bn.

Genworth CEO Georgette Nicholas. Pic: Renee Nowytarger

The parent company of ASX-listed Genworth Australia has been bought out by China Oceanwide in a deal worth $US2.7 billion ($3.55bn).

Genworth Financial — which controls 52 per cent of Genworth Australia following a float of its local arm in 2014 — announced the all-cash deal over the weekend.

The US-based group said the transaction would have no impact on the operations of its Australian division (GMA), although the deal will represent a change-of-control transaction.

“Genworth intends to maintain its existing portfolio of businesses, including its MI businesses in Australia and Canada,” the takeover target said.

“Genworth’s day-to-day operations are not expected to change as a result of this transaction.”

In a brief statement to the ASX, Genworth Australia said it had been advised of the deal and noted the plans to retain the existing portfolio as Genworth Financial serves as a stand-alone subsidiary of China Oceanwide.