ING Groep, the Dutch lender and former owner of ING Direct, the online bank based here in the United States, will be selling its stake in Capital One. ING had picked up a nearly 10 percent stake in that bank when it sold ING Direct to Capital One, reports Bloomberg:
Bank of America Corp. (BAC), Morgan Stanley (MS) and Citigroup Inc. (C) will jointly manage the public offering of about 54 million shares, McLean, Virginia-based Capital One said in a statement yesterday. Pricing is expected before regular trading opens today in New York, with settlement on Sept. 10, ING said in a separate statement.
ING acquired the stake, valued at about $3 billion as of yesterday, when Capital One bought ING Direct USA for $9.1 billion of cash and stock in February. The deal made Amsterdam- based ING the largest shareholder and entitled it to name a director to Capital One (COF)’s board. It prevented the Dutch lender from selling the holding until the lock-up ended, according to a June 2011 statement announcing the sale.
ING is reportedly seeking to repay aid it received from the Netherlands in 2008. According to Bloomberg, of the 10 million euros it borrowed, it “has returned 7 billion euros, plus 2 billion euros in interest and premiums.”
The deal is not expected to affect Capital One or ING Direct customers in any way.