What happened

Thursday is shaping up to be a relatively calm day for the stock market, but one stock that is seeing a major upside move is Genworth Financial (NYSE:GNW). As of 10:45 EDT, the mortgage and long-term care insurance company was higher by nearly 16%.

So what

Since the COVID-19 pandemic and recession hit, Genworth investors have been wondering about the company's pending sale to China Oceanwide Holdings. The deal has been delayed 14 times over the past few years, and most of the regulatory hurdles have now been cleared, but there has been skepticism that the deal will be finalized at all, particularly because of concerns regarding financing.

Man looking at laptop and cheering.

Image source: Getty Images.

The company issued an update to shareholders Wednesday afternoon, stating that China Oceanwide has informed them that the $1.8 billion financing arrangement they're relying on has been successfully extended through the end of June, which is the current deadline for the transaction to be finalized. The company also reiterated that both parties remain committed to closing the deal toward the end of May.

Now what

The purchase of Genworth is set to occur at a price of $5.43 per share, so even after today's gain, this implies about 57% potential upside. It's fair to say investors remain unconvinced that the merger will finally happen. And with the deal first announced in October 2016, it's easy to see why investors remain cautious. However, if the merger finally does happen, Genworth shareholders stand to make a nice profit.