ING to sell stake in US arm for up to $1.5 billion
ING Groep to float stake in US arm for $1.5 billion; business worth much less than book value
AMSTERDAM (AP) -- ING Groep NV says it will sell a 25 percent stake in its U.S. arm for around $1.4-$1.5 billion in an initial public offering, as part of measures demanded by the European Commission to compensate after ING received a bailout from the Dutch government in 2008.
ING U.S. has insurance, investment and retirement businesses.
The IPO price range suggests ING U.S. is worth $6 billion, less than half the $14.2 billion the company had valued it on its books. ING said it expected the listing to lead to a 1.6 billion euros ($2.1 billion) reduction in shareholders' equity, but the offering "will not have a material impact on the regulatory capital of either ING insurance or ING bank."
The company said Wednesday it will use proceeds to pay down debt.
