On 18 December 2018, ING Bank Śląski and its subsidiary, ING Investment Holding (Polska) S.A., signed with NN Investment Partners International Holdings B.V. preliminary agreement for the acquisition of a 45% of shares of NN Investment Partners TFI S.A. (NN TFI). According to the purchase agreement, the key condition precedent for the closing of the transaction is the absence of an objection by the Polish Financial Supervision Authority.
On 23 July 2019, the Polish Financial Supervision Authority issued a decision that there were no grounds for objection to the aforementioned purchase of shares. From the date of completing the transaction, i.e. 31 July 2019, NN TFI is an affiliated entity of the Bank. The purchase price payable after the closing of the transaction – after appropriate adjustments provided for in the transaction documentation have been made – amounted to PLN 169.1 million, which implies a valuation of 9.2x P/E (Price / Earnings; 2018) and 2.0% P/AuM (Price / Assets under Management; June 2019).
Our Bank will use the equity method to value its stake in the company. The settlement of the transaction was recognized in Q3 2019. For detailed information on the settlement of the transaction see the ING Bank Śląski S.A. Group Annual Consolidated Financial Statements for the year 2019.
Strategically, our Bank’s Group wants to promote long-term clients’ savings, also by offering investment products. We want to be even more co-responsible for the solutions we provide to our clients in terms of investments. Hence the decision on capital cooperation with one of the key players on the Polish market, having a strong brand, long-term experience and good results of the funds – NN TFI.
We believe that the transaction will also have a positive impact on the faster transformation of balance sheet savings of our bank’s clients into investment funds – thanks to the strengthening of the image of ING Bank Śląski as a strong brand with a savings and investment offer.