NETHERLANDS – Aegon’s Dutch subsidiary, Aegon Nederland NV, has said it is in talks to acquire TKP, the administration agency created by the Dutch posts and telecoms pension funds, in a bid to break into the Dutch larger pensions market. Price has not been disclosed.
TKP, or TPG KPN Pensioen BV, was originally set up as an administration agency by telecoms firm KPN and postal service TPG and their pension funds. It now serves six pension funds, with assets in excess of six billion euros.
It has been agreed that TKP will continue to provide services such as management, administration and asset management to the six funds if a buyout occurs. The funds have a total 146,000 participants, and Aegon has said that they will be not be affected by a possible acquisition.
An acquisition of TKP would provide Aegon with an opening into the Netherlands’ larger pension funds market. “We want to expand TKP’s specific expertise further in order to become a player in this field in Europe,” explains Jan Overmeer, board member at Aegon Nederland.
For TKP, a potential acquisition by Aegon will be strategically beneficial. Says Hans Hokke, managing director of TKP: “There is more and more competition in the pensions administration market, and the quality and efficiency of service are points on which pension funds assess the administrator. TKP want to gain more pension funds as customers, and in this, has Aegon as a strategic partner.”
Aegon Nederland is currently in exclusive negotiations with the current shareholders of TKP.
The intended acquisition follows the announcement that Aegon’s UK arm has taken a 60% stake in a UK advisory business called Positive Solutions Ltd., for an undisclosed sum, with the option to buy the remaining 40% in 2006. Aegon UK has been buying up UK independent financial advisors (IFAs) throughout 2002 as part of a strategy to expand its advice distribution.