The Dutch state is moving ABN AMRO to a clear minority position, cutting its holding from 20.7% to 10.5% by selling depositary receipts under a fifth trading plan that will run until the maximum number of certificates has been sold.
The planned reduction
ABN AMRO said the Dutch government will reduce its stake in the bank to 10.5% from 20.7% by selling certificates of shares under a fifth trading plan, and that the bank’s relationship agreement with the state would end once the holding falls below 10% (live.euronext.com). The plan is to start in the coming days and to remain in place until the maximum number of depositary receipts has been sold; the announcement does not say the sale is already complete.
How the sale will work
NLFI said the selldown will be carried out through a pre-agreed trading plan that BofA Securities Europe will execute, rather than the state trying to sell the whole holding in one go, and that the programme will end once the maximum number of share certificates has been sold (nltimes.nl). The statement describes the plan as an open-market trading programme that begins shortly and finishes when the maximum is reached. That leaves the timing of completion open-ended; the announcement doesn't set out a public price floor or a timetable for when the final certificate will be sold.
The Dutch state’s prior selldown was completed in July and, according to the same report, generated about €2.5 billion for the government. That earlier programme ran for almost a year before closing.
What changes for the bank and the state
ABN AMRO said the depositary receipt structure used for these sales gives investors substantially the same economic rights as ordinary shareholders while the foundation that issues the receipts can, as a takeover defence, temporarily restrict voting rights in certain circumstances.
Under the existing Relationship Agreement, the state retains certain information rights while its stake is at or above that threshold; the agreement ends once the holding drops below it. NLFI declined to say whether future reductions would be executed via market sales or could involve a private buyer.
Context and market implications
Bloomberg said the bank had a market value of about €34.5 billion (US$38.7 billion) at Tuesday’s close, and reported ABN AMRO Chief Executive Marguerite Bérard as saying on Bloomberg TV that “We welcome” the decision and that it was “not an unexpected” step (news.bloomberglaw.com). Management has framed the move as consistent with a desire to see ABN AMRO return fully to private ownership, but the announcement itself sets only the 10.5% target for this trading plan and does not commit the state to full privatisation or a final total of proceeds.
Put together, the new plan follows the July selldown that reportedly raised about €2.5 billion and now aims to cut the stake to 10.5%. How much the state will ultimately raise from the sequence of reductions will depend on market conditions and any future decisions NLFI or the government make. Investors will watch when the trading plan completes and whether NLFI begins further reductions or seeks a private buyer.
