Aegon NV (AEG) Financial News - AEGON to Launch Equity Issue of 10%
Aegon NV (AEG)
AEGON to Launch Equity Issue of 10%
Keywords: AEGON to Launch Equity Issue of 10%Quote: THE HAGUE, The Netherlands, February 24, 2011 /PRNewswire-FirstCall/ -- AEGON reiterates its intention to repurchase all outstanding core capital provided by the Dutch State before the end of June 2011. The total of the repurchase of 375 million convertible core capital securities at the agreed premium of 50% amounts to EUR 2.25 billion.AEGON aims to issue 173.6 million common shares via an accelerated book-build offering beginning today. The equity issue will be used to fund the repurchase and will compensate for a part of the EUR 2.25 billion decrease of core capital as a result of the repurchase. This will allow AEGON to maintain a strong capital position and to meet its targeted ratio of core capital to total capital of at least 75% by year-end 2012. The remaining amount will be generated from internal resources, including proceeds from divestments.The Dutch Central Bank (DNB) has given its consent to the repurchase of the first EUR 750 million of core capital immediately following the equity issue. Furthermore, DNB supports AEGON's actions towards repurchasing the remaining EUR 750 million of core capital, which requires DNB's formal consent in June 2011. In general, consent is conditional upon financial markets not deteriorating materially."As announced last year, we intend to fully repurchase the core capital provided by the Dutch State by the end of June 2011, market conditions permitting" said AEGON CEO Alex Wynaendts. "Today's equity offering, together with internal resources, including proceeds from divestments, will position us to repurchase all core capital securities. We are currently in negotiations with a party on the divestment of AEGON's life reinsurance operations. The equity offering announced today supports our strategy to maintain a strong capital position, including achieving ou...
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