Delta Lloyd to Raise $226M with Sale of Stake in Van Lanschot

By | June 9, 2016

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.

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