Dutch financial conglomerate ING is planning to divest approximately 11.5% stake in its US-based retirement, investment and insurance subsidiary, as part of a strategy to streamline its operations, globally.
The proceeds from the planned sell, which represents nearly 30 million shares of common stock of ING US, will be used to reduce the Group’s core debt.
The transaction has been structured as an SEC-registered public offering, and after completion of disposal of shares, ING Group’s stake in ING US will decrease from approximately 71% to about 60%.
Additionally, the Netherlands-based financial firm would grant the underwriters for the transaction an option to acquire up to 4.5 million additional shares, which would further reduce its stake in ING US to nearly 58%.
Previously, ING said that it will dispose its remaining stake in ING US over time, in accordance with its strategy to divide and divest its insurance and investment management businesses.
In August, ING inked an agreement with Seoul-based private equity firm MBK Partners, to divest its South Korean insurance business, in a transaction valued at nearly KRW1.84trn (€1.24bn).
In July, ING agreed to dispose of 50% stake in its Chinese insurance joint venture (JV) ING-BOB Life Insurance Company to BNP Paribas Cardif, the insurance arm of French bank BNP Paribas.
The Amsterdam-based company, which received a €10bn bailout package during the financial crisis of 2008, is selling insurance and investment management businesses globally.
ING offers banking, investments, life insurance and retirement services, with operations mostly concentrated in China, Hong Kong, India, Japan, Malaysia, South Korea and Thailand.