ING sells S. Korean insurance arm to MBK for 1.27 bil. euros
December 25, 2013, 12:18 am TWN
THE HAGUE -- Dutch banker ING on Tuesday said it has completed the sale of its South Korean insurance arm ING Life Korea to private equity firm MBK Partners in a deal worth around 1.27 billion euros (US$1.73 billion).
But the Amsterdam-based banker reiterated that the deal resulted in a 1.0-billion-euro after-tax loss “of which 950 million euros were recorded in its 2013 third quarter results” on Nov. 6.
ING posted an 84.7 percent plunge in net profit for the third quarter on the back of the loss-making sale to MBK.
Profits spiraled from 659 million euros in 2012 to 101 million euros.
ING is now left with a 10 percent indirect stake in ING Life Korea, equivalent to an amount of approximately 80 million euros in the company, which employs 1,000 people and serves 1.3 million clients.