ING to divest insurance operations
Dutch bank to launch €7.5bn capital hike
In a dramatic restructuring move, Dutch bancassurer ING Groep said today it would sell its insurance and investment management operations, and plans to repay half of its €10bn ($15bn) state aid with the help of a €7.5bn rights issue.
ING said it would explore several options for the divestments, including initial public offerings, sales or a combination of such moves.
ING also said Monday that it expects to post an underlying net result in the third quarter of €750m. The net result after divestments and special items is about €500m, or €0.24 a share, the bancassurer said.
ING said it had reached an agreement with the Dutch state to repay half of the state capital injection with the €7.5bn rights issue and to repurchase €5bn of core tier-one securities in December 2009.
ING said it has finalized negotiations with the European Commission on its restructuring plan and expects approval for the Dutch government support measures from the EU in November.
In order to win EU approval the company has to divest ING Direct in the US by the end of 2013. ING said it will keep its ING Direct internet banking operations in other countries.
ING shares fell following the news. At 08:17 GMT, they were down €0.42 or 3.5% at €11.24, underperforming the Stoxx Europe 600 financial services index, which was up 0.4%.
- By Bart Koster; Dow Jones Newswires; +31 20 571 5201; bart.koster@dowjones.com
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