ING has confirmed its intention to proceed with the initial public offering (IPO) and listing on Euronext Amsterdam of NN Group, an insurance and investment management company.
The IPO will comprise existing ordinary shares in NN Group, currently wholly owned by ING.
The intended IPO will consist solely of a secondary offering of a minority holding of NN Group’s existing ordinary shares currently held by ING Group to institutional and retail investors in the Netherlands and to certain institutional investors in various other jurisdictions.
ING believes that the announcement is in line with its objective to divest its insurance and investment management businesses and become a pure bank. ING intends to divest more than 50 percent of its shareholding in NN Group before December 31, 2015 and the remaining shares before December 31, 2016, in line with the timeline ING has agreed with the European Commission.
Three Asian-based investment firms, RRJ Capital, Temasek and SeaTown, will participate in the IPO as anchor investors for an aggregate amount of €150 million.
The NN Group shares that these three anchor investors will acquire at the IPO offer price will not be subject to any lock-up. In addition, ING has issued mandatory exchangeable subordinated notes to these anchor investors for an aggregate amount of €1.125 million.
Ralph Hamers, chief executive officer of ING Group, said: “Today’s announcement signals the launch of the final major transaction in ING’s five year restructuring. With the IPO of NN Group, we will have substantially completed the repositioning of ING as a pure bank.
“For NN Group it is a pivotal step in the journey to become a standalone company. I congratulate NN Group with the progress they have made in preparing for their future and in establishing a compelling investment case with a clear roadmap for shareholder returns.”
ING, IPO, Europe, NN Group, Ralph Hamers