NETHERLANDS - Dutch pension funds ABP and PGGM have sold NIB Capital to J.C Flowers & Co. for e2.1bn.
When the two funds acquired the merchant bank from the Dutch government in 1999 they are said to have paid some e2bn.
Announcing the agreement to sell their equal 50% stake in NIB Capital subject to regulatory approval, the pension funds said proceeds from the sale included a e0.3bn dividend for April.
“The acquisition of NIBCapital in 1999 has achieved a healthy return and allowed for successful joint operations in specialist fields like private equity and structured finance,” said Else Bos, chief investment officer, PGGM.
“This sale marks the end of a period of careful exploration into the best possible option for the future growth of NIBCapital. The transaction provides us as investors a good return and, at the same time, supports the ambitions of the company.”
Roderick Munsters, CIO of ABP, said the sale marked the next phase in the realisation of the bank’s ambitions to expand its business model.
“In order to realise its ambition to expand the business model, NIBCapital requires access to additional capital,” he said. “We appreciate the efforts of NIBCapital management and staff to create maximum shareholder value for ABP and PGGM over the last few years. The management received our full support in their initiative to explore the options for future growth.”
In a joint press release, the bank said Michael Enthoven will remain chairman of the managing board of NIBCapital and there would be no changes to the board. It is expected that a new supervisory board will be appointed as soon as the formal transfer of the shares - expected to take place before the end of the year - has been completed.
Meanwhile, the bank reported net profit of e83m at then end of the second quarter, compared with e82m for the same period last year.
Sir Philip Green's restructuring proposals for his retail giant Arcadia will not "adequately protect" its pension schemes' members, The Pensions Regulator (TPR) has said.
The Marks and Spencer Pension Scheme has completed buy-in deals worth £1.4bn with two insurers, mirroring similar transactions last year.
There have now been a total of 47 buy-in and buyout deals of over £500m announced since 2007. The full list, provided courtesy of LCP, is as follows...