ING to sell part of SulAmérica stake to IFC

ING’s equity interest in SulAmérica will be reduced to approximately 21.5%

May 17, 2013 4:56 IST | India Infoline News Service
ING announced on Thursday that it has agreed to sell part of its direct stake in Sul América S.A. (SulAmérica) to International Finance Corporation (IFC). ING has agreed to sell approximately 26.5 million units of SulAmérica, representing approximately 7.9% of SulAmérica’s outstanding shares, for a total consideration of 400 million Brazilian Reais (roughly USD 200 million or EUR 155 million at current exchange rates). These shares have been released from the obligations of the shareholders agreement between ING and the Larragoiti Family as announced on 28 February 2013.

Upon the closing of both the sale to IFC and the transaction with the Larragoiti Family (in which ING agreed to reduce its 36.5% stake to just under 30%), ING’s equity interest in SulAmérica will be reduced to approximately 21.5%. The market value of the remaining stake is approximately EUR 410 million based on the closing share price of 15 May 2013 (R$14.95) and current exchange rates. The transaction with IFC is expected to close within 30 days, while the transaction with the Larragoiti Family is expected to close in the third quarter of 2013 as it is subject to regulatory approvals.

ING entered into the joint-venture with the Larragoiti Family in 2002 and has contributed to the successful development of SulAmérica for more than ten years. The transaction, announced, is part of the ING Group restructuring plan for the divestment of all its Insurance and Investment Management operations as agreed upon with the European Commission. ING will review options for the divestment of its remaining 21.5% stake as and when appropriate.

IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector in developing countries. With operations in more than one hundred (100) developing countries, IFC allows companies and financial institutions in emerging markets to create jobs, generate tax revenues, improve corporate governance and environmental performance, and contribute to their local communities.

SulAmérica is the largest independent insurance group in Brazil, with operations in several insurance lines. Its business lines are supported by diversified distribution capabilities that, as of December 2011 included a network of more than 30,000 independent insurance brokers. SulAmérica also has partnerships with more than 20 financial- and retail institutions, adding a further 16,000 points of sale.

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