AMSTERDAM (AP) -- ING Groep NV says it has agreed to sell most of its Latin American businesses to Colombia's Gruposura for euro2.615 billion ($3.76 billion) in cash, the latest in a spate of disposals.
ING says that on top of the deal price, Gruposura will take on euro65 million in debt for the businesses, which include ING's insurance, investment management and pension management activities. The deal does not include ING's 36 percent stake in Brazilian insurer Sul America SA.
ING has been selling operations to prepare for its European Union Commission-mandated split into one company for insurance and another for banking, after it was bailed out by the Dutch state during the 2008 financial crisis.
It still owes euro3 billion of the original euro10 billion in support it received, and another euro1.5 billion in penalties, with plans to pay back the balance in full by May 2012.
SNS Securities analyst Lemer Salah said the sale price was "attractive," and he expected the Brazilian stake would also be sold soon. He repeated a Buy rating on ING shares.
The total market cap of ING is 45 B. So they got the eqiuvalent of 20% market cap just for ING Direct USA. ING paid $5.1 B cash plus $1 B in debt just for ReliaStar in 2000. So they have gotten more back for just the bank than they paid for the whole company ten years ago.
hmmm. Interesting. I read the yahoo article yesterday evening when it first came out (around 7pm. That article said the value of the deal was around $50 per share. 30 minutes later, that was edited out of the article. You mean we get NOTHING literally??? (I'm a new ING shareholder)