Dutch pension funds ABP, Heerlen, and PGGM, Zeist, agreed to sell NIB Capital to an international group of investors led by private equity firm J.C. Flowers for €2.1 billion ($2.59 billion), according to a joint statement issued by the involved parties. ABP, with €180 billion in assets under management, and PGGM, with about €65 billion in assets, each hold a 50% stake in NIB Capital. The purchase price would include a €300 million dividend payment due to shareholders this year. The parties signed the sale agreement today, and the deal is expected to close by the end of the year, subject to regulatory approval.
The deal is the result of a "strategic review" initiated by the managing board of NIB Capital in the second half of 2004, according to the statement, which noted there will be no changes to NIB Capital's managing board. Michael Enthoven will remain chairman.
The proposed purchase group "is committed to support the growth of our business model and will allow us to continue the strategic direction we have set out for ourselves," Mr. Enthoven said in the statement. Roderick Munsters, CIO of ABP, and Else Bos, CIO of PGGM, both noted in the statement that the deal is the best option for NIB Capital's future growth. Officials at J.C. Flowers believe "NIB Capital's employees are a great asset," J. Christopher Flowers, chairman of J.C. Flowers, said in the joint statement.
Goldman Sachs is NIB Capital's financial adviser for the proposed transaction; Morgan Stanley is assisting the two pension funds and ABN AMRO is assisting J.C. Flowers.