ING Groep NV's Polish unit ING Bank Śląski SA signed a preliminary agreement to acquire a 45% stake in investment fund manager NN Investment Partners TFI from NN Investment Partners International Holdings BV.
The transaction is expected to close in the second quarter of 2019, after gaining regulatory approvals. The sale is priced at 177.2 million Polish zlotys, plus 2.5% interest per year for the period from Jan. 1, 2018, to the transaction closing date.
ING Bank Śląski will be entitled to receive dividends from the investment fund manager, starting from the dividend paid out from the 2018 net profit, the Polish bank said Dec. 18. The lender estimates that the deal will reduce its consolidated total capital ratio and Tier 1 ratio by about 15 basis points.
NN Group said the deal will not have a material impact on its operating result or solvency ratio. ING Bank Śląski and NN Investment Partners TFI also entered into a shareholders agreement, which defines the terms of their cooperation and implementation of joint projects.
NN Investment Partners TFI was created from investment fund manager ING TFI after ING Groep divested its insurance and investment management business in 2014, creating NN Group NV. The company is Poland's fourth-largest investment fund manager, with a market share of about 8.9% and assets under management amounting to 17.4 billion zlotys as of the end of November.
NN Group NVAs of Dec. 18, US$1 was equivalent to 3.77 Polish zlotys.