The Netherlands raised about 1.48 billion euros (US$1.68 billion) from selling an additional 7 percent stake in ABN Amro Group NV, taking advantage of steady demand for European bank stocks as it progresses toward full privatization.
The government sold 65 million shares for 22.75 euros each in an accelerated bookbuild, reducing its holding to 63 percent, NL Financial Investments (NLFI), which manages the state’s financial investments, said yesterday.
The remaining shares in ABN Amro are subject to a lock-up period of 60 days following the settlement, NLFI said.
The offering adds to about US$44 billion of European bank shares sold or scheduled to be placed this year amid optimism about growth in the eurozone.
Wind-downs of several troubled lenders in Spain and Italy this year have also failed to dent confidence.
Spanish Minister of Economy, Industry and Competitiveness Luis de Guindos on Tuesday said that his country plans to sell further stakes in Bankia SA if there is demand, after the state-owned lender agreed to take over Banco Mare Nostrum SA.
ABN Amro, once one of the world’s biggest banks, has refocused its business on domestic lending in the wake of its near collapse during the financial crisis.
It returned as a publicly traded company in November 2015 when the government sold a 23 percent stake in an initial public offering. The Netherlands plans to gradually sell down its holding.
ABN Amro has rallied about 10 percent this year, compared with a 6.8 percent gain in the 37-member Bloomberg Europe 500 Banks and Financial Services Index. The shares yesterday closed at 23.24 euros.
The bank has been reshuffling its senior ranks, replacing veterans of its state-brokered reorganization as it prepares for the return to full private ownership.
Last month, it announced that Delta Lloyd NV chief financial officer Clifford Abrahams would take on the same role at the bank, replacing Kees van Dijkhuizen, who was named chief executive officer in January.
ABN Amro also intends to appoint Tanja Cuppen from Rabobank North America as chief risk officer.
Other banks that sold shares this year include Deutsche Bank AG, Credit Suisse Group AG and UniCredit SpA, which raised a combined 25 billion euros.
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