ING to unload 11.5 percent stake in US-based unit

21st October 2013, Comments 0 comments

Dutch banking and insurance giant ING on Monday took a step closer to separating with its US-based insurance arm, saying it planned on selling a further 11.5 percent of its shares in the unit.

The sale of some 30 million shares in ING US through an initial public offering will see the Amsterdam-based ING's stake fall from 71.0 to around 60.0 percent, the group said in a statement.

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

The sale's final timing, size and offer price were yet to be determined and "remained subject to market and other conditions," ING added.

On the New York Stock Exchange, ING US's share price fell by 1.75 percent to $30.685 (22.84 euros) on Monday.

ING in May sold off more than a quarter of its stake in its US-based daughter company, hoping to raise an eventual 1.5 billion euros through the sale.

The deal is part of a drive by the group, the Netherlands' largest bank, to restructure its business as it continues to repay 10 billion euros in state aid, received in October 2008 during the height of the financial crisis.

ING is scheduled to shed its remaining stake in ING US by the end of 2016.

© 2013 AFP

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