July 10 (Bloomberg) -- The banks that arranged the initial public offering of ING Groep NV’s insurance unit exercised their option to buy more shares, bringing the biggest Dutch lender closer to its goal of a total divorce from NN Group NV.
ING’s stake in the insurance arm shrank to 68.1 percent after underwriters including JPMorgan Chase & Co., Morgan Stanley and Deutsche Bank AG bought 11.6 million additional shares, the Amsterdam-based lender said today. The bank held 71.4 percent after the IPO on July 2, which raised 1.54 billion euros ($2.1 billion).
The company got a 10 billion-euro bailout from the Dutch government in 2008 after suffering heavy losses on assets backed by U.S. mortgages during the financial crisis. European antitrust regulators agreed to the state aid on condition ING sell its global insurance operations. The bank has to sell more than half of NN Group NV before 2016 and the remainder before 2017.
Total proceeds from the IPO, a conversion of mandatory exchangeable notes under an agreement with three Asian investors last week and the over-allotment option, are 2.2 billion euros, ING said.
Shares of NN have increased more than 11 percent since they were sold at 20 euros apiece in the IPO. The stock rose 0.3 percent to 22.25 euros at 9:37 a.m. in Amsterdam today.
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