Seeking Alpha

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

  • 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.
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