Delta Lloyd to Sell 30.2% Stake in Wealth Manager Van Lanschot to Raise Capital

By and | May 31, 2016

Delta Lloyd NV started selling its entire 30.2 percent stake in wealth manager Van Lanschot NV as part of the insurer’s plan to boost capital.

A total of 11.3 million existing depository receipts of Van Lanschot are on sale at 15 euros to 18 euros apiece, Delta Lloyd said in a statement on Tuesday. Members of Van Lanschot’s executive board have agreed to subscribe to stock of the wealth manager with a total value of 1.06 million euros ($1.18 million).

“It’s not going to be an easy offering,” said Joost van Beek, an analyst at Theodoor Gilissen Bankiers NV, who has a hold rating on Delta Lloyd. “Van Lanschot has difficult growth prospects, while Delta Lloyd really needs the money. It could explain why the pricing is on the low end.”

The sale follows the Dutch company’s 650 million-euro rights offer in April. Delta Lloyd has been under pressure to meet stricter capital requirements for insurers under rules known as Solvency II.

Delta Lloyd was down 1.3 percent at 4.54 euros as of 9:19 a.m. in Amsterdam after having risen as much as 1.5 percent earlier. Van Lanschot was 4.4 percent lower at 17.43 euros. Shares of the wealth manager are down about 20 percent this year.

The offering includes shares representing a 27.4 percent stake in Van Lanschot plus an over-allotment option of as much as 10 percent of the main offering. The final price will be determined following a bookbuilding process that runs through June 8.

Goldman Sachs Group Inc., Bank of America Corp. and ABN Amro Group NV are managing the offering.


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