Though the stake comprises roughly 36 million shares, valued at $751 million, the company is not making the sale to raise cash. According to analysts the stake is being sold because it no longer brings tax advantages to ING.
Last year, ING held more than 5% in Fortis, however its stake was diluted when Fortis merged its separate Dutch and Belgian shares into a single listed entity.
ING’s current 2.7% stake will be placed privately with institutional investors and the company expects this to be completed by market close on Thursday.
ING Investment Bank and Morgan Stanley Dean Witter & Co are the joint book runners for the transaction and are currently approaching institutions.
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