Temasek and RRJ Capital to invest HK$13.6b in ING unit
Temasek and RRJ Capital target growth markets in Europe with stake deals in Dutch group's insurance unit that is expected to be spun off
Temasek, a Singaporean sovereign wealth firm, and RRJ Capital, an Asian investment house, will invest €1.27 billion (HK$13.6 billion) in a subsidiary of Dutch financial conglomerate ING.
"We are very pleased to invest in NN. This reflects our confidence in the long-term prospects of the company," said Charles Ong, a co-chief executive and co-chairman of RRJ.
A Temasek spokesman said: "NN is an insurance and investment management group with a leading position in the Netherlands. It offers exposure to both growth and mature markets in central, eastern and the rest of Europe."
Charles Ong is a former senior managing director of Temasek. His brother, Richard, is the founding chairman and chief executive of RRJ and was previously a Goldman Sachs banker as well as a founding partner of Hopu Investment Management, a China-focused private equity firm.
RRJ will buy €661.7 million of subordinated convertible notes from ING, while Temasek and wholly owned SeaTown will subscribe for €463.3 million of the notes, according to an ING statement.
By 2016, the notes will be converted into equity stakes in NN, which has Japanese and European insurance and investment management operations.