Dutch bank NIBC Holding NV said late on Monday it has agreed to pay its 2019 dividend to its proposed buyer, U.S. equity firm Blackstone Group Inc , before the deal settles, in order to remove one hurdle to the proposed 1.36 billion-euro takeover.
FILE PHOTO: The ticker and trading information for Blackstone Group is displayed at the post where it is traded on the floor of the New York Stock Exchange April 4, 2016. REUTERS/Brendan McDermidAMSTERDAM: Dutch bank NIBC Holding NV said late on Monday it has agreed to pay its 2019 dividend to its proposed buyer, U.S. equity firm Blackstone Group Inc , before the deal settles, in order to remove one hurdle to the proposed 1.36 billion-euro takeover.
NIBC said in April it would delay payment of its 0.53 euro 2019 final dividend amid the coronavirus outbreak, following guidance from the Dutch Central Bank. That prompted Blackstone to warn that the special purpose company it had set up for the intended offer for NIBC might not have sufficient funding to complete the acquisition. Blackstone also said regulatory hang-ups could jeopardize the deal."After further discussions NIBC has now committed to ...
U.S. private equity firm JC Flowers, which holds 60.6per cent of NIBC's stock, and Dutch investment firm Reggeborgh, which owns 14.6per cent, have agreed to Blackstone's proposed offer.NIBC said on Monday that as part of the deal JC Flowers and Reggeborgh would waive their right to the 2019 dividend"until such time that in the opinion of the management and supervisory boards of NIBC, payment is feasible and appropriate in light of the impact of COVID-19 on the business.
NIBC, which services around 600 small firms and 400,000 retail clients in the Netherlands, made a net profit of 194 million euros last year.