Aegon Launches Offer to Sell 6% Stake in ASR Nederland

Aegon Ltd., a global insurance group, has launched an offer to sell a 6% stake in its Dutch subsidiary ASR Nederland. The move comes as part of Aegon's efforts to strengthen its capital position and improve its financial flexibility. The sale is expected to generate approximately €750 million, which will be used to repay debt and support future growth initiatives.

Dutch insurer Aegon Ltd. has initiated an offer to sell a 6% stake in ASR Nederland NV, its Dutch subsidiary. The move is part of Aegon’s broader strategy to strengthen its capital position and improve financial flexibility, as it shifts its focus to the US market [1].

Aegon is offering around 12.5 million shares in ASR through a placement with investors, which would reduce its holding to about 24%. The stake for sale is valued at approximately €720 million ($838 million) based on ASR’s closing price on Tuesday. Additionally, ASR will buy back about 15% of the stock on sale for as much as €150 million [1].

This strategic sale is indicative of Aegon’s ongoing shift away from the Netherlands to the US. Last month, Aegon announced plans to make New York the primary trading venue for its stock alongside its Amsterdam listing and move its legal domicile to the US. It expects to complete this review in the coming months [1].

The offering also reflects a rally in the price of ASR shares. Aegon’s Chief Financial Officer Duncan Russell indicated in February that the firm would only sell down its stake if the price was high enough or it had another use for the proceeds. ASR’s shares have risen 26% this year, with investor demand exceeding the stock available shortly after the deal was launched [1].

In 2022, Aegon agreed to combine its Dutch operations with ASR Nederland in a €4.9 billion deal with the intention of creating a dominant player in their home market. It then opted to shift its legal domicile to Bermuda as it no longer had a regulated insurance business in the Netherlands [1].

JPMorgan Chase & Co., Barclays Plc, and Goldman Sachs Group Inc. are arranging the offering. The proceeds from the sale are expected to be used to repay debt and support future growth initiatives [1].

References:
[1] https://www.livemint.com/companies/company-results/dutch-insurer-aegon-offers-6-asr-stake-as-it-focuses-on-the-us/amp-11756833382712.html