Ageas SA/NV subsidiary Ageasfinlux SA will repurchase approximately 65.50%, or €818.8 million, of the floating-rate equity-linked subordinated hybrid, or FRESH, capital securities involved in a tender offer following a Jan. 3 deadline.
The repurchased securities will be exchanged into 2,599,206 underlying shares of the parent company. The shares will remain on the group's balance sheet as treasury shares and will not be entitled to dividends or voting rights. The total number of outstanding shares remains unchanged.
The securities not purchased will remain outstanding and will continue to be regarded as grandfathered Restricted Tier 1 capital.
The settlement date is expected to be Jan. 8. The impact of the tender, and of the issuance of the Restricted Tier 1 subordinated instrument Dec. 10, 2019, on the group's solvency ratio, balance sheet and profit and loss account will be disclosed after the completion of the tender transaction, including the unwind of the associated interest rate swap.