NETHERLANDS – ABP and PGGM say the proceeds from the sale of their 50-50 owned merchant bank NIB Capital will amount to more than €2bn.
The sale to an investment group led by J.C. Flowers & Co., finalised today, will see proceeds of €2.1bn for the two largest pension Dutch funds, a statement said.
“The acquisition of NIB Capital in 1999 has achieved a healthy return and allowed for successful joint operations in specialist fields like private equity and structured finance,” said Else Bos, chief investment officer at €68bn health care scheme PGGM.
Bos added the sale “provides us as investors a good return and, at the same time, supports the ambitions of the company”.
Her counterpart at €180bn civil service fund Stichting Pensioenfonds ABP, Roderick Munsters, said: “We appreciate the efforts of NIB Capital management and staff to create maximum shareholder value for ABP and PGGM over the last few years.”
The schemes were advised by Morgan Stanley.
The new owners plan to support NIBC’s business model and expand its client franchise as well as foster an “an entrepreneurial environment” for employees.
Michael Enthoven will remain chairman of NIBC’s managing board, where there will be no changes. He said the move was “good news” for clients and employees.
NIBC was advised by Goldman Sachs while ABN Amro advised Flowers