Delta Lloyd NV may raise as much as 198.4 million euros ($226 million) through the sale of its stake in wealth manager Van Lanschot NV after shares were priced at 16 euros apiece.
The offering size was 180 million euros before the so-called overallotment option, the Dutch insurer said in a statement on Thursday. The sale will probably improve Delta Lloyd’s solvency ratio by 8 percentage points to 162 percent if all the extra shares are purchased, the upper half of Delta Lloyd’s target range. The sale was several times oversubscribed, it said.
Delta Lloyd Chief Executive Officer Hans van der Noordaa is under pressure to boost capital buffers after the European Union introduced stricter requirements for the industry. Van Lanschot shares have dropped about 23 percent this year as the company struggled to grow its wealth-management business in the Netherlands, reporting a 52 percent decline in first-quarter profit.
“We are clearly delivering on our capital plan and we will maintain our focus on generating capital,” the CEO said in the statement. “I am confident Van Lanschot’s shareholders will benefit from the increased free float.”
Goldman Sachs Group Inc., Bank of America Corp. and ABN Amro Group NV are managing the sale.
- Delta Lloyd to Sell 30.2% Stake in Wealth Manager Van Lanschot to Raise Capital
- Update: Delta Lloyd Shareholders Approve Contested Plan to Raise $720M
- Delta Lloyd Remains on CreditWatch Negative, Pending EGM & Rights Issue: S&P
- Update: Delta Lloyd Rejects Demand from Top Shareholder to Delay Rights Offer
- Delta Lloyd Cuts Size of Rights Offer to $715 Million to Placate Investors
- Dutch Insurer Delta Lloyd Still Faces Solvency II Uncertainties; Rights Issue Ahead
- Delta Lloyd Plans to Raise $1.06 Billion in Rights Offer to Improve Capital Position
- Update: Delta Lloyd’s $588 Million First Half Loss Raises Capital Concerns
- Delta Lloyd’s CFO Resigns After Court Upholds Fine for Information Abuse
- Delta Lloyd Uncertainties Persist Amid Concern It May Need to Plug Capital Gap
Was this article valuable?
Here are more articles you may enjoy.