Dutch government cuts stake in ABN Amro to 40.5%

AMSTERDAM (Reuters) – The Dutch government’s latest sale of ABN Amro shares has reduced its stake in the bank to 40.5% from 49.5%, Finance minister Eelco Heinen said in a letter to parliament on Wednesday.

WHY IT’S IMPORTANT

The sale is part of the government’s plan to cut its stake in ABN Amro, one of three dominant banks in the Netherlands, in a move towards liberalising the Dutch banking sector and reducing state intervention.

CONTEXT

The Dutch government has been decreasing its ownership in ABN Amro since the bank’s nationalization during the 2008 financial crisis.

BY THE NUMBERS

The Dutch Finance Ministry said approximately 78 million share certificates were sold, generating total gross sale revenue of 1.17 billion euros. The gross proceeds from ABN Amro’s share buyback programme were 200 million euros.

WHAT’S NEXT

The NL Financial Investments agency, the Dutch state’s financial holdings manager, will advise on any further reduction of the government’s stake in ABN Amro. Updates on new developments will be provided to the Dutch parliament as required.

KEY QUOTE

“With the completion of this sales program, a next step has been taken in the responsible return of ABN Amro to the market,” Heinen said.

($1 = 0.9079 euros)