Genworth Financial Inc. has terminated a $2.7 billion buyout agreement with investment firm China Oceanwide Holdings Group Co., the U.S. insurer said on Tuesday.
Shares of Genworth fell more than 6% in extended trading.
“Greater clarity about Genworth’s future is needed now in order for the company to execute its plans to maximize shareholder value,” Genworth’s non-executive chairman James Riepe said, explaining the rationale behind the move.
Genworth said its revised plans include a potential partial IPO of its U.S. mortgage insurance business.
The insurer said it will continue to explore partnerships with China Oceanwide to bring long-term care insurance products to the Chinese market.
(Reporting by Munsif Vengattil in Bengaluru; Editing by Ramakrishnan M.)
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