THE HAGUE (ANP) – The cabinet has completed another round of sales of ABN AMRO shares, reducing the state’s stake to 40.5 percent. The so-called sales program was announced last year. The sale of the shares has earned the state 1.17 billion euros, reports Finance Minister Eelco Heinen.
The proceeds do not deviate far from expectations. They will be used to pay off part of the national debt.
Using a so-called dribble-out method, small numbers of shares were sold in recent months. The shares had to be worth more than an agreed minimum. In this round, the state sold 78 million shares.
Share price value
The cabinet is seeking advice on the further reduction of its stake in ABN AMRO. In order to earn back what the state has spent on the bank, the shares that the state still has would have to be worth more than twice as much as the current market value.
“It is not realistic that such a price will be reached in the short term,” Heinen said in his letter. “The state is not an investor and therefore does not invest riskily if it does not serve the public interest. I therefore consider it undesirable to wait for a higher price.” After all, the bank was saved years ago to “ensure the stability of the financial system” during the financial crisis, and not to earn money from the shares.
What does the Dutch government‘s reduction of its stake in ABN AMRO mean for the banking sector?
Table of Contents
Dutch Government Reduces Stake in ABN AMRO, Raises €1.17 Billion
In a major development, the Dutch cabinet has successfully completed another round of sales of ABN AMRO shares, bringing the state’s ownership stake down to 40.5%. This move is part of the government’s previously announced sales program, which aims to reduce its holding in the banking giant. The latest sale has generated a whopping €1.17 billion in revenue, as reported by Finance Minister Eelco Heinen.
The proceeds from the sale are in line with expectations and will be utilized to pay off a portion of the country’s national debt. This is a significant step towards consolidating the country’s finances and reducing its debt burden.
Dribble-Out Method Pays Off
The government employed a dribble-out method to sell the shares, where small batches of stocks were sold over a period of time. This approach ensured that the shares were sold at a price above an agreed minimum value. In this round, the state sold an impressive 78 million shares, contributing to the significant revenue generated.
Reducing State Ownership
The cabinet is now seeking expert advice on further reducing its stake in ABN AMRO. This move is likely to give the banking industry more autonomy and allow it to operate more independently. The government’s decision to sell its shares in ABN AMRO is a strategic move to promote a more competitive banking sector in the Netherlands.
Benefits of Reducing State Ownership
Reducing state ownership in ABN AMRO is expected to have several benefits for the economy. Firstly, it will promote a more competitive banking sector, which will lead to better services and products for consumers. Secondly, it will allow ABN AMRO to operate more independently, making it more agile and responsive to market changes. the revenue generated from the sale of shares will help reduce the country’s national debt, leading to a more stable and sustainable economy.
ABN AMRO’s Future
ABN AMRO, one of the largest banks in the Netherlands, has a long history dating back to 1824. The bank has undergone significant transformations over the years, including a major restructure in 2008. The latest move by the government to reduce its stake in the bank is likely to have a positive impact on its operations and future prospects.
Conclusion
The Dutch government’s decision to sell its shares in ABN AMRO is a significant move towards promoting a more competitive banking sector and reducing the country’s national debt. The revenue generated from the sale will be utilized to pay off a portion of the national debt, contributing to a more stable and sustainable economy. As the government seeks expert advice on further reducing its stake in ABN AMRO, the future looks promising for the banking giant and the Dutch economy as a whole.
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Dutch Government Reduces Stake in ABN AMRO, Raises €1.17 Billion
In a significant development, the Dutch cabinet has successfully completed another round of sales of ABN AMRO shares, bringing the state’s ownership stake down to 40.5%. This move is part of the government’s previously announced sales program, which aims to reduce its holding in the banking giant. The latest sale has generated a whopping €1.17 billion in revenue, as reported by Finance Minister Eelco Heinen.
The proceeds from the sale are in line with expectations and will be utilized to pay off a portion of the country’s national debt. This is a significant step towards consolidating the country’s finances and reducing its debt burden.
Dribble-Out Method Pays Off
The government employed a dribble-out method to sell the shares, where small batches of stocks were sold over a period of time. This approach ensured that the shares were sold at a price above an agreed minimum value. In this round, the state sold an impressive 78 million shares, contributing to the significant revenue generated.
Reducing State Ownership
The cabinet is now seeking expert advice on further reducing its stake in ABN AMRO. This move is likely to give the banking industry more autonomy and allow
