FAIRFIELD, Conn.--(BUSINESS WIRE)--March 14, 2005--GE today is commencing a secondary public offering of shares of the Class A Common Stock of Genworth Financial, Inc. (Genworth, NYSE: GNW).
GE is offering up to 80.5 million Genworth shares, including shares subject to the underwriters' over-allotment option. Concurrently with the offering, Genworth will repurchase directly from GE $500 million of Genworth's Class B Common Stock at the net price GE receives in the secondary offering. The repurchase will be completed at the same time as, and is contingent upon, the completion of the secondary public offering.
As previously announced, GE will use the proceeds to eliminate "parent-supported" debt at GE Capital and enable GE Capital to increase the dividend it pays GE from 10% of its earnings to 40% commencing in the second quarter.
Upon completion of the offering, GE will own approximately 52% of Genworth's common stock if the underwriters' over-allotment option is exercised in full. GE expects, subject to market conditions, to reduce its ownership over the next two years as Genworth transitions to full independence.
Genworth today filed an amended registration statement with the U.S. Securities and Exchange Commission (SEC) relating to the secondary public offering.
The global coordinator and bookrunner is Morgan Stanley. JPMorgan and Merrill Lynch & Co. are joint lead managers and bookrunners for the secondary offering. Copies of the preliminary prospectus may be obtained from Morgan Stanley & Co. Incorporated, 1585 Broadway, New York, New York 10036.
A registration statement relating to Genworth's Class A common stock has been filed with the SEC but has not yet become effective. These securities may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective. This announcement shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any State in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such State.
GE (NYSE: GE) is a diversified technology, media and financial services company dedicated to creating products that make life better. From aircraft engines and power generation to financial services, medical imaging, television programming, and plastics, GE operates in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at www.ge.com.
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Contacts
General Electric, Fairfield
David Frail, 203-373-3387
[email protected]