The FINANCIAL — ING announced that it has reached an agreement for the sale of its 33.3% stake in China Merchants Fund, an investment management joint venture, to its joint venture partners China Merchants Bank Co., Ltd., and China Merchants Securities Co., Ltd.
Under the terms agreed, ING will receive a total cash consideration of EUR 98 million. At closing, ING expects the transaction to deliver a net gain of EUR 64 million.
The agreement is part of the previously announced intended divestment of ING’s Asian insurance and investment management businesses. As ING Group reported, the process for the remaining businesses is on-going. Further announcements will be made if and when appropriate.
China Merchants Fund was established in 2002 and is a joint venture between ING Investment Management, China Merchants Bank and China Merchants Securities. It has a market share of approximately 3% in the Chinese mutual funds market.
The transaction announced today, which does not impact any of ING’s other businesses in the region, is subject to regulatory approvals and is expected to close in the second quarter of 2013.
Discussion about this post