ING to sell ING Life Korea to MBK Partners
(Thomson Reuters ONE) -
* Sale is next major step in divestment of Asian insurance/investment
management units
* ING to receive total cash proceeds of approx. KRW 1.84 trillion (EUR 1.24
billion)
* ING to hold an indirect stake of around 10% in ING Life Korea for approx.
EUR 80 million
* Transaction result expected to be approx. EUR -950 million
ING announced today that it has reached an agreement to sell ING Life Korea, its
wholly owned life insurance business in South Korea, to MBK Partners for a total
purchase price of approximately KRW 1.84 trillion (EUR 1.24 billion at current
exchange rates). Under the terms of the agreement, ING will hold an indirect
stake of approximately 10% in ING Life Korea for an amount of KRW 120 billion
(EUR 80 million at current exchange rates). ING has also reached a licensing
agreement that will allow ING Life Korea to continue to operate under the ING
brand for a maximum period of five years. In addition, over the course of one
year, ING will continue to provide technical support and advice to ING Life
Korea.
"This transaction is a major step in the divestment of our Asian insurance and
investment management activities. Together with the scheduled payment of the
next tranche of the core Tier 1 securities to the Dutch State in November 2013,
this will bring us further into the end phase of the restructuring of our
company," said Jan Hommen, CEO of ING Group. "I am convinced that with the
support of MBK Partners, ING Life Korea will continue to grow its customer
offering and build on its position as the fifth-largest insurance company in the
Korean market. Through its 10% stake, ING will be able to benefit from that
growth potential."
ING has made great strides in delivering on its programme to divest its
insurance businesses as announced in 2009. Since then, ING has sold its
insurance and investment management operations in Canada, Australia & New
Zealand and Latin America, and a large portion of its insurance and investment
management activities in Asia. In May 2013, ING's U.S.-based retirement,
investment and insurance business was successfully listed on the New York Stock
Exchange, reducing ING's stake to approximately 71%. ING has accelerated
preparations for the IPO of its European insurance and investment management
businesses to be ready to go to market in 2014. The process to divest the
remaining insurance and investment management businesses is on-going and any
further announcements will be made if and when appropriate.
Transaction details
Total cash proceeds for the sale of ING Life Korea amount to KRW 1.84 trillion
(EUR 1.24 billion at current exchange rates). MBK Partners is executing the
transaction announced today through Life Investment Ltd, a private equity fund
and will manage the investment in ING Life Korea for MBK Partners as well as for
other investors in the fund. As part of the transaction, ING will hold an
indirect stake of approximately 10% in ING Life Korea for an amount of KRW 120
billion (EUR 80 million at current exchange rates) which will be held by ING
Insurance (ING Verzekeringen N.V.). As previously announced, the proceeds of the
transaction will be used to further reduce the debt of ING Insurance.
The transaction values ING Life Korea at 9.2x fiscal year 2012 earnings (ending
on 31 March 2013) and 0.73x book value as per 31 March 2013, both on a local
Korean GAAP basis
The transaction is expected to result in an after-tax loss for ING Group of
approximately EUR 950 million, to be booked in the third quarter of 2013. The
final transaction result at closing is subject to potential adjustments
customary for this type of transaction.
The transaction announced today is subject to regulatory approvals and is
expected to close in the fourth quarter of 2013. It does not impact ING's
Commercial Banking activities in South Korea.
Established in 1987, ING Life Korea is South Korea's largest foreign life
insurer, with about 1.3 million customers, more than 1,000 employees and
approximately 6,800 tied agents. It offers a comprehensive suite of life
insurance products across the customer lifecycle.
Established in March 2005, MBK Partners is the largest private equity firm in
Korea and one of the largest private equity groups in the Asia-Pacific region,
with over USD 8 billion in capital under management. MBK Partners focuses on
buyouts in Korea, Japan and China and is registered with the Financial
Supervisory Commission as a domestic private equity firm in Korea. With offices
in Seoul, Tokyo, Shanghai and Hong Kong, MBK Partners has 20 investee companies
in its portfolio, with over USD 5.8 billion in aggregate revenues and 292,000
employees. The Firm has a track record of investments in financial services,
including a bank, an insurance company, a leasing company and a consumer
financing company in Korea and China. MBK Partners is a long-term investor and
is committed to advancing the development of the financial services industry in
its markets. The Firm's investors include public and corporate pension funds,
financial institutions, sovereign wealth funds and funds of funds from around
the world as well as its home markets of Korea, Japan and China.
Press enquiries Investor enquiries
Carolien van der Giessen ING Group Investor Relations
+31 20 57 66386 +31 20 57 66396
Carolien.van.der.Giessen(at)ing.com Investor.Relations(at)ing.com
ING PROFILE
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
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 press release:
http://hugin.info/130668/R/1724730/574964.pdf
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(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#1724730]
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Datum: 26.08.2013 - 08:15 Uhr
Sprache: Deutsch
News-ID 290734
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