Dutch government to cut stake in ABN AMRO to around 20 percent
The Dutch government plans to reduce its ownership in ABN AMRO further, cutting its stake from 30.5 percent to around 20 percent, Caretaker Finance Minister Eelco Heinen announced on Tuesday. Heinen said the proceeds from the share sales will be used to reduce national debt.
The move follows a gradual divestment that began in 2015, aimed at returning the bank to more independent control. ABN AMRO was nationalized in 2008 during the financial crisis after its parent company Fortis faced collapse. The government purchased the bank for 16.8 billion euros to prevent a wider financial meltdown. According to NOS, since then, the state has gradually sold portions of its shares, generating nearly 12 billion euros in proceeds.
The latest sale, managed by NLFI—the agency overseeing government stakes in financial institutions—will consider market conditions and the bank’s performance to determine timing. “NLFI believes now is a good moment to further reduce the state’s holding,” a spokesperson said.
Reducing the government stake will reportedly give ABN AMRO more autonomy. With a holding below one-third, the bank no longer needs ministerial approval to issue new shares, and the minister’s voting advice no longer binds the foundation that shields the bank from hostile takeovers. The government retains the right to approve board members only if its stake drops below 10 percent.
