ING Groep NV (INGA) raised about $3 billion selling 54 million Capital One Financial Corp. (COF:US) shares received when the Dutch lender sold its U.S. online bank this year.
The shares were priced at $55.75 each, two people familiar with the matter said, asking not to be named because the terms weren’t announced. The transaction, which represented a stake of more than 9 percent in Capital One, may settle Sept. 10 and result in a gain of about 300 million euros ($378 million) for ING in the third quarter, the company said today in a statement.
ING, the largest Dutch financial-services firm, received the shares as part of its February sale of ING Direct USA. Capital One paid $9.1 billion (COF:US) of cash and stock, and by yesterday the U.S lender’s shares climbed 15 percent since Feb. 16, the day before the deal was completed. The European Union ordered ING to sell the U.S. online unit as a condition of its government bailout during the financial crisis.
“The transaction confirms our view that ING can transfer 2 billion euros of excess capital from the bank to the holding by year-end to repay part of the state support,” said Benoit Petrarque, an analyst at Kepler Capital Markets.
Capital One fell less than 1 percent to $56.09 at 12:53 p.m. in New York. ING shares rose 1.5 percent to 6.10 euros in Amsterdam. ING is up about 5.9 percent since Aug. 29, when the company announced the sale of its Canadian online bank for 2.5 billion euros to help repay a 2008 bailout.
ING executive Eli Leenaars will step down from Capital One’s board after the offer is completed, ING said today.
ING said the sale will free up about 1 billion euros in capital and boost its core tier 1 ratio by about 35 basis points. A basis point is 0.01 percentage point.
The lender, which received 10 billion euros in aid from the Netherlands, said it has returned 7 billion euros, plus 2 billion euros in interest and premiums.
Frans Middendorff, a spokesman for ING, declined to comment on the pricing for the stock sale.
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