ING Groep NV
) announced a deal to sell its entire stake in China Merchants Fund
(CMF) to its joint venture (JV) partners of the fund. Founded in
2002, China Merchants Fund is a JV between ING Investment
Management (33.3%), China Merchants Bank (33.4%) and China
Merchants Securities Co. Ltd (33.3%).
AMERIPRISE FINL (AMP): Free Stock Analysis
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The deal will bring €98 million ($128 million) in cash to ING and
is anticipated to be completed in the second quarter of 2013,
subject to certain regulatory terms and conditions. Upon closure,
it is also likely to result in a profit of approximately €64
million ($83.6 million).
ING is under stipulation by the European Union to sell its
insurance and investment management division by 2013, since it had
been granted a bailout fund by the Dutch government during the
financial crisis in 2008. The deal marks ING's first stride towards
the divestment of its Asian insurance and asset-management
business. Earlier in September,
Ameriprise Financial Inc.
) was almost in final stages of talks to acquire the majority of
the Asian asset-management unit of ING, excluding the joint
Previously, under the regulatory authorities' orders, in August,
the company announced the sale of ING Direct Canada - the Internet
banking division of ING Bank of Canada - to
The Bank Of Nova Scotia
). Further, in February 2012, it completed the sale of its online
banking unit - ING Direct USA - to
Capital One Financial Corp.
We believe completion of such deals will help ING in repayment of
bailout funds to the Dutch government. Further, it will help ING to
pay more attention to its core businesses amidst a bleak
ING currently retains a Zacks #4 Rank, which translates into a
short-term Sell rating.