ING Group To Reduce Stake In US Unit

(RTTNews) - Dutch financial firm ING Group N.V. (ING) announced Tuesday that it plans to sell about 33.5 million shares or about 12 percent stake in its U.S.-based retirement, investment and insurance subsidiary ING U.S., Inc. (VOYA).

Following the sale, ING Group's stake in ING U.S. would reduce to approximately 45 percent from approximately 57 percent at year-end 2013.

ING said it intends to use the proceeds of the planned transaction for the reduction of ING Group core debt.

Ralph Hamers, CEO of ING Group, said, "With this planned sale, we deliver on our agreement with the European Commission to further reduce our stake in ING U.S.in 2014 and accomplish another important milestone in the restructuring of ING Group while receiving proceeds to further reduce ING Group core debt."

The company noted that ING U.S. has filed an update of its registration statement with the U.S. Securities and Exchange Commission or SEC. The amended registration statement now covers 26.5 million shares to be offered in an underwritten public offering.

ING U.S. has also agreed to repurchase shares of its common stock from ING Group having a value of $250 million. Based upon the closing price of ING U.S. shares on the New York Stock Exchange on March 17, ING U.S. would repurchase approximately 7 million shares from ING Group.

If the underwriters fully exercise the option to purchase up to approximately 4 million additional shares, ING Group's stake in ING U.S. would be approximately 43 percent.

Upon a successful completion of these transactions, ING's retained minority stake in the US unit will be deconsolidated and will going forward be accounted for as an associate using equity accounting.

ING noted that this would fulfil its requirement under the terms of the restructuring agreement with the European Commission to divest at least 50 percent of ING U.S. and deconsolidate this business before year-end 2014.

ING US shares closed Tuesday's trading at $36.30, up $0.70 or 1.97 percent.