ING profits on Plan to reduce Voya Stake with $1.2 Billion percentage Sale

ING Groep NV, the biggest Dutch financial institution, won in Amsterdam trading after it said it'll reduce its stake in a former U.S. coverage unit, Voya economic Inc., to about 32 percent by using selling approximately $1.2 billion of shares.

ING is selling 30 million shares in Voya, in step with a assertion from the Amsterdam-based Dutch lender the day prior to this. As part of the plan, Voya will repurchase $three hundred million of its commonplace inventory from ING, the companies said. The value of the stake changed into based on Voya’s share fee, which stood at $39.37 after the cease of buying and selling in big apple the day past.

ING has been winding down its investment in Voya to comply with phrases of a 2008 bailout. The Dutch company divested stocks in an preliminary public imparting in 2013 and has considering decreased its protecting. the brand new share sale would cut ING’s stake in Voya from forty three percentage. The company become ordered via ecu Union regulators to absolutely cast off its remaining coverage assets, which include a sixty eight percent stake in Europe-targeted NN organization NV, through the end of 2016.

ING shares rose 1.2 percentage to ten.sixty eight [$14.04] at nine:28 a.m. today, bringing their strengthen for the yr to five.eight percent.

ING “has entered the final leg of the restructuring of its insurance operations, following which it'll be a pure retail and industrial financial institution,” JPMorgan Chase & Co. analysts inclusive of Kian Abouhossein, stated in a word to clients dated Sept. 1. it is amongst shares with “fabric dividend payout ability.”

ING said it expects the transaction to be finished on Sept. eight.

ING ultimate paid a dividend in August 2008, rapidly before the financial crisis because the financial institution turned to the authorities for €10 billion ($thirteen billion). ING nonetheless owes taxpayers €1.03 billion [$1.354 billion], due by way of can also. The bank final month said it is able to reimburse the authorities earlier than the closing date, paving the way for a go back to dividends, depending at the final results of an asset first-class overview by means of the eu crucial bank in October.