Van Lanschot NV jumped 5.4 percent in Amsterdam trading after investors snapped up a stake in the Dutch wealth manager being sold by Delta Lloyd NV.
Delta Lloyd on Thursday said its sale of depositary receipts representing about 30 percent of the company was several times oversubscribed at a price of 16 euros each. The sale may raise as much as 198.4 million euros ($225 million), the Dutch insurer said.
Delta Lloyd Chief Executive Officer Hans van der Noordaa is under pressure to boost capital buffers after the European Union introduced stricter requirements for the insurance industry. Thursday’s stake sale will probably improve the company’s solvency ratio by 8 percentage points to 162 percent if all the extra shares are purchased, the company said.
“We are clearly delivering on our capital plan and we will maintain our focus on generating capital,” the CEO said in the statement. “I am confident Van Lanschot’s shareholders will benefit from the increased free float.”
Van Lanschot was up 88.5 cents at 17.25 euros at the close of trading. The shares have dropped by almost 19 percent this year. Delta Lloyd fell 2.7 percent to 4.23 euros. The stock has gained about 4 percent this year.
Goldman Sachs Group Inc., UBS Group AG, Bank of America Corp. and ABN Amro Group NV managed the sale.