RRJ, Temasek back ING insurance unit
RRJ Capital and Temasek Holdings have agreed to invest EUR1.28 billion ($1.8 billion) in NN Group (NNG), the insurance unit of Dutch lender ING Group.
According to a release, ING will receive EUR750 million in cash from RRJ, EUR425 million from Temasek, and another EUR100 million from Temasek-owned Seatown Holdings, in exchange for subordinated ING notes that will be mandatorily exchangeable into NNG shares by 2016.
ING will also sell additional shares in NNG - which comprises its European and Japanese insurance and investment management operations - to each investor, totaling EUR150 million at the unit's forthcoming IPO.
Of this amount, EUR88 million will come from RRJ, EUR50 million from Temasek and EUR12 million from SeaTown. There will be no lock-up on the shares, which will be acquired at the IPO price. If the offering does not take place in 2014, the transaction will be unwound, and the subordinated notes will be redeemed.
ING has been in the process of disposing its global operations under orders of EU regulators as a condition of its 2008 bailout. In August last year, MBK Partners agreed to buy ING Group's South Korean life insurance division - ING Life Korea - for around KRW1.84 trillion ($1.65 billion) with ING retaining a 10% stake.
Prior to that, Hong Kong-based Pacific Century Group paid EUR1.64 billion for ING's life insurance, general insurance, pension and financial planning units in Hong Kong and Macau, and its life insurance operation in Thailand. RRJ also has a 4.4% stake in ING's US insurance unit, having invested an extra $248 million last October.
Temasek is a frequent co-investor with RRJ, which was set up by Richard Ong, formerly of Goldman Sachs and Hopu Investments, in 2011. Temasek is understood to be an LP in RRJ's funds and Ong's brother Charles, who joined RRJ as co-chairman and co-CEO in 2012, previously spent 10 years with Temasek, including a stint running SeaTown.
RRJ reached a final close of around $3.5 billion on its second fund last year.
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