ING agrees to sell its stake in Capital One

ING agrees to sell its stake in Capital One

ING announced today that it has agreed to sell all of its 54 million shares in Capital One Financial Corporation, a U.S.-based financial holding company, in an underwritten public offering for a total value of approximately USD 3.0 billion (EUR 2.4 billion) at current exchange rates.

BofA Merrill Lynch, Morgan Stanley and Citigroup Global Markets Inc. will act as joint book-running managers for the offering. The transaction is expected to settle on 10 September 2012.

ING obtained the shares in February 2012 as part of the consideration for the sale of ING Direct USA to Capital One. The transaction is expected to result in an after-tax gain for ING of approximately EUR 0.3 billion, to be booked in the third quarter of 2012 and a capital release of EUR 1.0 billion.

The transaction is expected to further strengthen ING Bank’s capital position, with a positive impact on ING Bank’s core Tier 1 ratio of approximately 35 basis points. Combined with the positive impact of approximately 47 basis points related to the sale of ING Direct Canada to Scotiabank, as announced on 29 August 2012, this will lead to a pro-forma core Tier 1 ratio of 11.9 % based on ING Bank’s core Tier 1 ratio of 11.1% at 30 June 2012 and current exchange rates.

Pursuant to a shareholders agreement between ING Group and Capital One, Eli Leenaars, who has served on Capital One’s board of directors as ING’s nominee since May 2012, has submitted his resignation from his position on Capital One’s board of directors effective upon the closing of the offering.

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