ING to Sell Part of ING Canada

February 4, 2009

A unit of European financial services giant ING Groep NV is selling a C$1.75 billion (US $1.41 billion) chunk of its ownership stake in ING Canada, the companies said Tuesday.

A unit of European financial services giant ING Groep NV is selling a C$1.75 billion (US $1.41 billion) chunk of its ownership stake in ING Canada, the companies said Tuesday.

The ING Groep subsidiary will sell C$850 million (US $684.5 million) of its ING Canada shares to a group of institutional investors in a private placement. It will also sell another C$900 million (US $725.2 million) of shares in a bought-deal public offering that will be led by CIBC World Markets and TD Securities.

Once the two deals are done, the ING Groep subsidiary will continue to hold about 15.8 million common shares of ING Canada, or about 13.2 percent of the company, before any over-allotment options are exercised.

ING Canada shares were halted on the Toronto Stock Exchange. They last changed hands at C$33.79 (US $27.23) each.

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