ING to sell ING Car Lease to BMW
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* Sale reflects ING´s commitment to strengthen focus of the Bank
* Expected total proceeds of EUR 700 million in cash at closing
* Expected total proceeds include base purchase price of EUR 637 million and
estimated earnings until closing
* Sale is expected to release EUR 530 million of capital, adding 17 bps to
core Tier 1 ratio
ING announced today that it has reached an agreement to sell ING Car Lease for
an expected total consideration of EUR 700 million to BMW Group fleet management
division Alphabet.
"The sale of ING Car Lease illustrates ING´s continued actions to streamline
our business and simplify the company", said Jan Hommen, CEO of ING Group.
"Going forward ING will continue to build on its leadership position as a
predominantly European Bank with a strong international network focused on
providing its customers consistent high-quality services."
Expected total proceeds of EUR 700 million at closing will include purchase
price of EUR 637 million based on 2010 year end book value and estimated 2011
earnings until closing. The sale of ING Car Lease will result in a net
transaction result of approximately EUR 335 million and a capital release of
around EUR 530 million. The transaction is expected to have a positive impact on
ING Bank´s core Tier 1 ratio of 17 basis points, based on the core Tier 1 ratio
of 10.01% per 31 March 2011.
ING Car Lease is a leading operational car leasing and fleet management business
in Europe, with 240,000 vehicles and top 10 positions across the eight countries
in which it operates. ING Car Lease started its operations in 1977 and became
part of ING Group in 1985. It has a total workforce of around 1200 employees per
31 December 2010. ING Car Lease balance sheet total was EUR 3.5 billion per 31
December 2010.
BMW Group is one of the world´s most successful premium manufacturers of cars
and motorcycles. BMW Group is active in fleet management services through
Alphabet, a BMW Group Division headquartered in Munich, Germany, with around
750 employees. Alphabet offers consulting, financing and car services to more
than 12,000 customers. It was established in 1997 in the UK and today manages
more than 300,000 multi-brand company car contracts and is represented in 14
countries.
The transaction is expected to close in the fourth quarter of 2011, subject to
regulatory approvals. ING´s other leasing and factoring businesses, including
ING Lease and ING Commercial Finance, are not affected by today´s announcement.
Press enquiries Investor Inquiries
Carolien van der Giessen Alexander Mollerus
+31 20 541 6522 +31 20 541 6482
Carolien.van.der. Giessen@ing.com Alexander.Mollerus@ing.com
About ING
ING is a global financial institution of Dutch origin offering banking,
investments, life insurance and retirement services. As of 31 March 2011, ING
served more than 85 million private, corporate and institutional clients in more
than 40 countries. With a diverse workforce of about 105,000 people, ING is
dedicated to setting the standard in helping our clients manage their financial
future.
Important Legal Information
Certain of the statements contained herein are not historical facts, including,
without limitation, certain statements made of future expectations and other
forward-looking statements that are based on management´s current views and
assumptions and involve known and unknown risks and uncertainties that could
cause actual results, performance or events to differ materially from those
expressed or implied in such statements. Actual results, performance or events
may differ materially from those in such statements due to, without limitation:
(1) changes in general economic conditions, in particular economic conditions in
ING´s core markets, (2) changes in performance of financial markets, including
developing markets, (3) the implementation of ING´s restructuring plan to
separate banking and insurance operations, (4) changes in the availability of,
and costs associated with, sources of liquidity such as interbank funding, as
well as conditions in the credit markets generally, including changes in
borrower and counterparty creditworthiness, (5) the frequency and severity of
insured loss events, (6) changes affecting mortality and morbidity levels and
trends, (7) changes affecting persistency levels, (8) changes affecting interest
rate levels, (9) changes affecting currency exchange rates, (10) changes in
general competitive factors, (11) changes in laws and regulations, (12) changes
in the policies of governments and/or regulatory authorities, (13) conclusions
with regard to purchase accounting assumptions and methodologies, (14) changes
in ownership that could affect the future availability to us of net operating
loss, net capital and built-in loss carry forwards, and (15) ING´s ability to
achieve projected operational synergies. ING assumes no obligation to publicly
update or revise any forward-looking statements, whether as a result of new
information or for any other reason.
pdf version of press release:
http://hugin.info/130668/R/1529425/465033.pdf
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