SAN DIEGO & RICHMOND, Va.--(BUSINESS WIRE)--
Shareholder rights attorneys at Robbins Arroyo LLP are investigating
the proposed acquisition of Genworth Financial, Inc. (NYSE: GNW) by
China Oceanwide Holdings Group Co., Ltd. On October 23, 2016, the two
companies announced the signing of a definitive merger agreement
pursuant to which China Oceanwide will acquire Genworth Financial. Under
the terms of the agreement, Genworth Financial shareholders will receive
$5.43 in cash for each share of Genworth Financial common stock.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/shareholders-rights-blog/genworth-financial-inc-oct-2016
Is the Proposed Acquisition Best for Genworth Financial and Its
Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board of
directors at Genworth Financial is undertaking a fair process to obtain
maximum value and adequately compensate its shareholders.
As an initial matter, the $5.43 merger consideration represents a
premium of only 4.2% based on Genworth Financial's closing price on
October 22, 2016. This premium is significantly below the average one
day premium of nearly 46.27% for comparable transactions within the past
three years. In the last three years, Genworth Financial traded as high
as $18.74 on May 13, 2014, and most recently traded above the merger
consideration – at $5.44 – on August 11, 2015.
On August 2, 2016, Genworth Financial reported earnings results for its
second quarter 2016. Net operating income for the second quarter of 2016
was $123 million, or $0.25 per diluted share, compared with net
operating income of $119 million, or $0.24 per diluted share, in the
second quarter of 2015, a 3.4% increase. During the second quarter of
2016, Genworth Financial completed the sale of its European Mortgage
Insurance ("MI") business to AmTrust Financial Services, Inc., which
resulted in net proceeds of approximately $50 million to the U.S. MI
business. Genworth Financial beat consensus analyst estimates for
Adjusted Net Income in three out of the last four quarters. In
commenting on these results, Genworth Financial President and Chief
Executive Officer Tom McInerney remarked, "Our results in the second
quarter were solid, and we were especially pleased with the strong
performance in U.S. MI. We also achieved our cash expense reduction
target and remain on track to complete the repatriation of our Bermuda
subsidiary in the fourth quarter."
In light of these facts, Robbins Arroyo LLP is examining Genworth
Financial's board of directors' decision to sell the company now rather
than allow shareholders to continue to participate in the company's
continued success and future growth prospects.
Genworth Financial shareholders have the option to file a class action
lawsuit to ensure the board of directors obtains the best possible price
for shareholders and the disclosure of material information. Genworth
Financial shareholders interested in information about their rights and
potential remedies can contact attorney Darnell R. Donahue at (800)
350-6003, [email protected],
or via the shareholder
information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in securities
litigation and shareholder rights law. The law firm represents
individual and institutional investors in shareholder derivative and
securities class action lawsuits, and has helped its clients realize
more than $1 billion of value for themselves and the companies in which
they have invested.
Attorney Advertising. Past results do not guarantee a similar outcome.
View source version on businesswire.com: http://www.businesswire.com/news/home/20161025006457/en/
