ING Investment Management could go up for sale as part of parent ING Group's divestiture of its insurance business, according to ING spokesman Raymond Vermeulen.
ING Investment Management could go up for sale as part of parent ING Group's divestiture of its insurance business, according to ING spokesman Raymond Vermeulen.
A strategic review of ING Group in the past six months led officials to announce a decision to spin off the insurance business — which includes the €400 billion ($596 billion) asset management operation. Executives will “explore all options, including initial public offerings, sales or combinations thereof,” according to a company announcement.
There's no timeline, but company officials expect the restructuring plan to be “executed by the end of 2013,” according to the announcement.
The decision was part of ING's efforts to appease antitrust concerns brought by the European Commission after the company received aid from the Dutch government during the height of the global financial crisis.
In addition to divesting the insurance unit, ING plans to launch a €7.5 billion rights issue, according to the announcement. Proceeds from the rights issue and the spinoff of the insurance business will be used to pay back the government and reduce the level of leverage within the company.
“Today we are announcing a comprehensive set of actions that, taken together, provide a clear plan for resolving the uncertainty created by the financial crisis and will launch a new era for ING,” Jan Hommen, CEO, said in announcing the insurance business divestiture.
Separately, Jacques de Vaucleroy resigned as CEO of ING Investment Management. He will remain as adviser to the management board until Jan. 1 “to ensure a smooth transition,” according to the announcement.
Gilbert Van Hassel, European CEO of ING Investment Management, will replace Mr. de Vaucleroy in the interim until a permanent replacement is appointed; he will retain his current responsibilities.
Further information about Mr. de Vaucleroy's departure was not available at press time.
Thao Hua is a reporter for Pensions & Investments, a sister publication to InvestmentNews
