The Dutch financial services group ING Groep N.V. said Tuesday it is selling part of its holdings in its former subsidiary, ING U.S., in order to repay debt.
ING Groep had a 57 percent stake in ING U.S. at the end of last year. The sale of 33.5 million shares throughout the year would reduce the former parent company’s holdings to about 45 percent.
ING U.S. plans to spend $250 million to repurchase shares of its common stock from ING Groep. The number of shares, about 7 million, is based on Monday’s closing price of ING U.S. stock on theNew York Stock Exchange.
The timing, size and price of the stock sales is subject to market conditions and other circumstances, the company said. ING Groep also is offering to sell additional shares — up to 4 million — which would reduce its stake in the company to 43 percent.
“With this planned sale, we deliver on our agreement with the European Commission to further reduce our stake in ING U.S. in 2014 and accomplish another important milestone in the restructuring of ING Groep while receiving proceeds to further reduce ING Groep core debt,” ING Groep CEO Ralph Hamers said in a statement.
ING U.S. will be officially rebranded on April 7 as Voya Financial Inc. The company separated last year from ING Groep N.V. and the U.S. entity had its initial public offering of stock on May 2.
The company has 1,730 employees in Connecticut, of which about 1,650 people work in the Windsor offices. Others work at home.
By Matthew Sturdevant, Hartford Courant