ING Direct, the Internet banking business of Dutch group ING, is launching an all cash EUR416 million takeover bid for German direct mortgage broker Interhyp.
ING Direct says it will launch a EUR64 per share public tender offer for Interhyp in June, which will last for at least four weeks.
The offer price represents a 42% premium on Interhyp's closing price of EUR 49.02 on Friday, prior to disclosure of the ING bid.
Founded in 1999, Munich-based Interhyp offers residential mortgages from over 50 banks via the Internet or over the phone. It is the largest independent residential mortgage distributor in Germany with over 38, 000 closed mortgages and a distributed mortgage volume of EUR 5.7bn in 2007.
Interhyp's co-founders and co-CEOs Robert Haselsteiner and Marcus Wolsdorf have irrevocably committed to tender their combined stakes - around 32% - in the company. The two men will continue in their positions and the company will remain independent, keeping its own brand, says ING.
Dick Harryvan, ING Group executive board member and CEO, ING Direct says: "This acquisition is in line with ING Direct's strategy to strengthen and expand its range of simple products in savings, mortgages, payment accounts and investment services."
"Interhyp's business model and sophisticated technology platform offer a large potential for enhancing ING's distribution platforms in Europe," he adds.
ING says the transaction is expected to be EPS accretive in 2009 and reduce the group's spare leverage by approximately EUR400 million. The deal, subject to regulatory approval, is expected to close in the third quarter 2008.
Earlier this month ING entered into a definitive agreement with Citigroup and State Street to buy US benefits servicing business CitiStreet in $900 million all cash deal.
ING Direct also agreed a $220 million deal for US online equity brokerage Sharebuilder last November.