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# ING Groep N.V. Message Board

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• jpomper jpomper Jun 19, 2011 5:27 AM Flag

## Value to Shareholders

Well, let' take a look at it from another wievpoint.

1)Include into the calculations the ING Insurance business.
Insurance total Assets are 325B, from ING total assets of 1250B, this is 26%.

Its share from Equity total of 46B is 20B, this is 43%.

Insurance underlying result is 461m from the total ING undarlying result of 2150m, this is 21%.

2) Take an average of the above numbers, and you get to the conclusion that ING Insurance Business is cca. 30% of the total value of ING.

3)If ING Direct is worth \$9B today, and it is cca. (9%, 15% average) 13% of ING total value,
then a 30% share of ING should be valued at cca. \$21B. So, by the present market transaction ING Insurance should be valued at cca. 21B.

4)Now, add to ING banking Busines value (see previous post) of cca. \$80B (since it is valued between \$60 and \$100B) the Insurance Business value of cca. \$20B, you get a total ING value of \$100B today.

5) And you get for ING Direct only \$9B?
Or is it?

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• Conclusion:

1) If the current Stockmarket valuation of ING is right, then selling ING Direct for \$9B was a reasonabley good deal, cca. 25% above the stockmarket value.

2) If the price of \$9B was right for ING Direct in this transaction (and the stockmarket valuation is wrong), and you calculate ING Total value from this,
then you must conclude selling for \$9B was a definitely bad deal.
ING sold its crown jewel for cca. \$4B less than it should have.

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