The total of the repurchase of 375 million convertible core capital securities at the agreed premium of 50% amounts to EUR 2.25 billion.
Aegon aims to issue 173.6 million common shares via an accelerated book-build offering beginning today. The equity issue will be used to fund the repurchase and will compensate for a part of the EUR 2.25 billion decrease of core capital as a result of the repurchase. This will allow Aegon to maintain a strong capital position and to meet its targeted ratio of core capital to total capital of at least 75% by year-end 2012. The remaining amount will be generated from internal resources, including proceeds from divestments.
The Dutch Central Bank (DNB) has given its consent to the repurchase of the first EUR 750 million of core capital immediately following the equity issue. Furthermore, DNB supports Aegon’s actions towards repurchasing the remaining EUR 750 million of core capital, which requires DNB’s formal consent in June 2011. In general, consent is conditional upon financial markets not deteriorating materially.
"As announced last year, we intend to fully repurchase the core capital provided by the Dutch State by the end of June 2011, market conditions permitting” said Aegon CEO Alex Wynaendts. "Today’s equity offering, together with internal resources, including proceeds from divestments, will position us to repurchase all core capital securities. We are currently in negotiations with a party on the divestment of Aegon’s life reinsurance operations. The equity offering announced today supports our strategy to maintain a strong capital position, including achieving our targeted ratio of at least 75% core capital by year-end 2012.”
Aegon will use the existing authorization of the annual shareholders’ meeting to issue 10% of the issued common share capital. Vereniging Aegon is not expected to take part in the offering. Vereniging Aegon is expected, however, to exercise the option to purchase additional class B preferred shares to preserve its share of voting rights.
Morgan Stanley will be acting as Sole Global Coordinator and Joint Book runner for the offering. Deutsche Bank and JP Morgan will also act as Joint Book runners. A prospectus for the offering may be obtained from Morgan Stanley, 20 Bank Street, Canary Wharf, London, E14 4AD, United Kingdom.
Registration statement Aegon has filed a registration statement (including a prospectus) with the SEC for the equity offering described in this presentation. Before you invest, you should read the prospectus in that registration statement and other documents Aegon has filed with the SEC for more complete information about Aegon and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, Aegon, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free:+1-866-718-1649.