[AMSTERDAM] The Dutch government is embarking on another reduction in its stake in ABN Amro Bank as it continues to gradually pare its holdings in the lender it bailed out during the financial crisis.
As a result of the disposal, the state’s interest in ABN Amro will fall to about 20 per cent from the current 30.5 per cent, its investment vehicle NLFI said in a statement on Tuesday (Sep 9). The stake being sold is worth about 1.55 billion euros (S$2.3 billion) at current market prices, according to Bloomberg calculations.
“The sales programme is in line with the current government policy to further reduce the state’s interest in ABN Amro,” Finance Minister Eelco Heinen said in a letter to parliament on Tuesday.
The government spent almost 22 billion euros to rescue ABN Amro during the 2008 crisis and remained its largest shareholder as the lender exited higher-risk businesses and focused on the Netherlands and northwestern Europe.
Tuesday’s announcement is the latest disposal by the Dutch government, having sold shares in the lender three times previously through an accelerated book build since ABN Amro was relisted in 2015.
In May, the government said it had reduced its stake in the bank to below a third, which entailed the loss of its right to prior approval of steps such as capital increases or substantial deals.
“The decision to launch a trading plan does not preclude NLFI from executing other monetisation transactions in its holding in ABN Amro,” including during the term of the trading plan, the investment vehicle said. It said it will keep other sale options open, such as accelerated bookbuilds or directed buybacks.
The Amsterdam-headquartered bank saw a change of guard this year as Marguerite Berard took over as chief executive officer in April. Under her leadership, ABN Amro completed its acquisition of Hauck Aufhäuser Lampe, deepening its position in the German wealth management segment.
The former BNP Paribas executive is reorganising the corporate banking unit and has pledged to unveil a new strategy for the bank in November. BLOOMBERG
