ING to sell ING Direct Canada to Scotiabank
(Thomson Reuters ONE) -
* Total consideration of CAD 3.1 billion (EUR 2.5 billion) in cash
* Expected transaction gain of approximately EUR 1.1 billion after tax at
closing
* Transaction expected to result in capital release of EUR 1.4 billion at
closing
* Positive impact on ING Bank's core Tier 1 ratio of approximately 47 bps
ING announced today that it has reached an agreement to sell ING Direct Canada
for a total consideration of CAD 3.1 billion (EUR 2.5 billion at current
exchange rates) to Scotiabank, a leading Canadian financial services company.
The transaction is a result of ING's continuous evaluation of its portfolio of
businesses and is in line with ING's strategic objectives of sharpening the
focus of the bank and further strengthening its capital position.
"Over the past 15 years we have successfully built ING Direct into the leading
direct bank in Canada. I am very pleased that in Scotiabank we have found a
complementary owner with the ambition to further grow the business, which is a
testament to the quality of our local management and employees as well as to the
strength and potential of the business model," said Jan Hommen, CEO of ING
Group. "Scotiabank's straightforward business model combined with the innovative
and successful ING Direct model make an ideal combination for a strong future
and a solid base for both our customers and employees."
Since its launch in April 1997, ING Direct Canada has built its business by
providing customers excellent service and a simple, transparent product offering
of savings, chequing, mutual fund and mortgage products through call centres,
the internet and ING Direct cafés. With over 1100 employees serving 1.8 million
clients, ING Direct has a proven track record of putting its customers' needs
first. ING Direct Canada is profitable with a strong capital position and
approximately CAD 40 billion in assets.
The ING Direct units in Australia, Austria, France, Germany, Italy and Spain are
not affected by today's announcement. ING continues to invest to evolve the ING
Direct business model, increasing the product offering and extending
distribution, while integrating the balance sheet with the rest of ING Bank. On
2 August, ING announced that it was reviewing options for ING Direct UK. This
review is ongoing, and any further announcement will be made if and when
appropriate.
Under the terms of the sale agreement, Scotiabank will pay CAD 3.1 billion in
cash for all of the shares in ING Bank of Canada, which is the formal name of
ING Direct Canada. Earnings of ING Direct Canada until closing of the
transaction will be for the benefit of Scotiabank. In addition to this,
Scotiabank will assume the responsibility to redeem on the first call date after
closing of the sale transaction a locally issued lower tier 2 bond (ISIN CA
456847AA01) with a total outstanding amount of CAD 321 million, which carries a
guarantee from ING Bank N.V..
The sale of ING Direct Canada is expected to lead to a transaction gain of EUR
1.1 billion after tax and a capital release of EUR 1.4 billion at closing for
ING. The transaction is expected to further strengthen ING Bank's capital
position, leading to a pro-forma core Tier 1 ratio of 11.6% based on ING Bank's
core Tier 1 ratio of 11.1% at 30 June 2012 and current exchange rates.
Scotiabank is Canada's most international bank and one of North America's
premier financial institutions. More than 81,000 employees serve the diverse
needs of over 19 million customers in more than 55 countries around the world.
Scotiabank offers a broad range of products and services including personal,
commercial, corporate and investment banking. With assets of CAD 670 billion
(as at July 31, 2012), Scotiabank shares are traded on the Toronto and New York
exchanges.
The sale of ING Direct Canada is subject to customary regulatory approvals and
is expected to close in the fourth quarter of 2012.
Press enquiries Investor Inquiries
Ingeborg Klunder Investor Relations
+31 20 576 6371 +31 20 576 6396
Ingeborg.Klunder(at)ing.com Investor.relations(at)ing.com
About ING
ING is a global financial institution of Dutch origin, offering banking,
investments, life insurance and retirement services to meet the needs of a
broad customer base. Going forward, we will concentrate on our position as an
international retail, direct and commercial bank, while creating an optimal
base for an independent future for our insurance and investment management
operations.
As a wholly-owned subsidiary of ING Group, ING Direct Canada operates on a
stand-alone basis and is governed by the same rules and regulations as other
Canadian banks under OSFI (Office of the Superintendent of Financial
Institutions). ING Direct's Canadian dollar savings and chequing products are
eligible for Canada Deposit Insurance Corporation (CDIC) insurance.
Important Legal Information
Certain of the statements contained in this document are not historical facts,
including, without limitation, certain statements made of future expectations
and other forward-looking statements that are based on management's current
views and assumptions and involve known and unknown risks and uncertainties
that could cause actual results, performance or events to differ materially
from those expressed or implied in such statements. Actual results,
performance or events may differ materially from those in such statements due
to, without limitation: (1) changes in general economic conditions, in
particular economic conditions in ING's core markets, (2) changes in
performance of financial markets, including developing markets, (3)
consequences of a potential (partial) break-up of the euro, (4) the
implementation of ING's restructuring plan to separate banking and insurance
operations, (5) changes in the availability of, and costs associated with,
sources of liquidity such as interbank funding, as well as conditions in the
credit markets generally, including changes in borrower and counterparty
creditworthiness, (6) the frequency and severity of insured loss events, (7)
changes affecting mortality and morbidity levels and trends, (8) changes
affecting persistency levels, (9) changes affecting interest rate levels, (10)
changes affecting currency exchange rates, (11) changes in investor, customer
and policyholder behaviour, (12) changes in general competitive factors, (13)
changes in laws and regulations, (14) changes in the policies of governments
and/or regulatory authorities, (15) conclusions with regard to purchase
accounting assumptions and methodologies, (16) changes in ownership that could
affect the future availability to us of net operating loss, net capital and
built-in loss carry forwards, (17) changes in credit-ratings, (18) ING's
ability to achieve projected operational synergies and (19) the other risks
and uncertainties detailed in the risk factors section contained in the most
recent annual report of ING Groep N.V.
Any forward-looking statements made by or on behalf of ING speak only as of
the date they are made, and, ING assumes no obligation to publicly update or
revise any forward-looking statements, whether as a result of new information
or for any other reason. This document does not constitute an offer to sell,
or a solicitation of an offer to buy, any securities.
PDF version of the press release:
http://hugin.info/130668/R/1637191/526346.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: ING Group via Thomson Reuters ONE
[HUG#1637191]
Unternehmensinformation / Kurzprofil:
Datum: 29.08.2012 - 22:13 Uhr
Sprache: Deutsch
News-ID 178949
Anzahl Zeichen: 8874
contact information:
Town:
Amsterdam
Kategorie:
Business News
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"ING to sell ING Direct Canada to Scotiabank"
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