* ING to reduce stake in insurer by 7.2 pct
* Controlling shareholder to buy stake from ING
SAO PAULO Feb 28 ING Groep NV, the
biggest Dutch financial services company, agreed on Thursday to
reduce its stake in Brazilian insurer SulAmérica Seguros e
Previdencia SA, raising funds to repay a state
bailout received after the global financial crisis.
Under terms of the deal, ING will sell a 7.2 percent stake
in SulAmérica to Brazil's Larragoiti family, the Brazilian
company's controlling shareholder, according to a securities
filing. The transaction leaves ING with a 28.8 percent stake in
SulAmérica, Brazil's third-largest insurer.
Neither SulAmérica nor ING gave details on the value of the
transaction. Management at SulAmérica will discuss the deal with
investors in a conference call later in the day.
Based on SulAmérica's closing price on Wednesday, ING might
have raised 346 million reais ($176 million) from the sale. The
value of ING's remaining stake in SulAmérica is worth about 1.4
billion reais, according to Thomson Reuters calculations.
Shares of SulAmérica fell 2.5 percent to 18.99 reais, after
hitting a record-high 19.58 reais earlier on Thursday. The stock
is up 7.5 percent this year.
The Amsterdam-based insurance giant is facing regulatory
pressure to shed industry assets in Asia and other regions by
the end of 2016 as part of a 10 billion euros ($13.1 billion)
bailout package it received in 2008. Late in 2011, ING exited
most of its Latin American pension business, raising about $3.5
billion from the sale.
On Wednesday, the Brazilian insurer posted a 19 percent jump
in fourth-quarter net income, as revenue was propped up by
gradual increases in the value of premiums throughout the year
and efforts by Chief Executive Officer Thomaz de Menezes to
streamline operating costs.