ING to give up majority control of U.S. unit

|About: ING Groep N.V. (ING)|By:, SA News Editor

ING (ING) intends to cut its stake in ING U.S. (VOYA) to 45% from 57% by selling 26.5M shares in a public offering and another 7M to the subsidiary.

The transactions would be worth $1.2B based on ING U.S.'s closing price yesterday of $36.30, which is well above its IPO price of $19.50 in May. The Dutch bank plans to use the proceeds to repay debt.

However, ING expects to record a Q1 loss of €2B, due to the difference between the sale price and the book value of ING U.S.'s shares.

The Dutch bank is gradually exiting the unit as part of the terms of a bailout it received during the financial crisis.

ING's PR about the deal clarifies the details of the sale after the company withdrew a release that it published in error.