Aegon Trims Stake in ASR Nederland, Boosts Buyback Expectations

Aegon has reduced its stake in ASR Nederland by 6% to 24%, raising expectations for capital distribution. This move is seen as positive and may push buyback expectations higher. Analyst Michele Ballatore notes that Aegon's smaller participation in ASR reduces overhang and is beneficial on balance. Aegon aims to reduce its cash to 1.0 billion euros from 2.7 billion euros.

Dutch insurer Aegon Ltd. has announced the reduction of its stake in ASR Nederland NV by 6% to approximately 24%. This strategic move comes as Aegon shifts its focus to the US market, aiming to reduce its cash holdings to €1 billion from €2.7 billion [1].

The sale, which involved the offering of around 12.5 million shares in ASR, was executed at a price of €56 per share, resulting in gross proceeds of €700 million. ASR Nederland also repurchased 1.875 million shares at the same price, amounting to approximately €105 million. The transaction is expected to settle on September 5, 2025, and will reduce Aegon’s holding in ASR from 29.96% to approximately 24% [3].

Analysts have noted that this reduction in stake is positive for Aegon, as it reduces overhang and could potentially push buyback expectations higher. Michele Ballatore, an analyst, commented that Aegon's smaller participation in ASR is beneficial on balance [1].

Aegon’s Chief Financial Officer, Duncan Russell, had previously stated that the firm would only sell down its stake if the price was high enough or it had another use for the proceeds. The recent increase in ASR’s share price, which has risen by 26% this year, has made this sale feasible [1].

The transaction is anticipated to result in an 11 percentage point increase in the Group solvency ratio and an IFRS book gain in the second half of 2025 of approximately €0.2 billion. The cash proceeds from the sale will be recorded in Aegon’s Cash Capital at Holding in the third quarter of 2025 [3].

The sale was arranged by JPMorgan Chase & Co., Barclays Plc, and Goldman Sachs Group Inc. [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
[3] https://finance.yahoo.com/news/aegon-successfully-sells-12-5-053000316.html