The Dutch government has reduced its ownership in ABN Amro Bank NV to just under 50%, marking a significant step in the government's long-term divestment plan. The move comes after a five-year pause in the sale of the bank's shares, with the government's stake being reduced through the sale of depositary receipts on Monday.
The Netherlands government previously held a 56.3% stake in ABN Amro Bank, divided into 49.9% shares and 6.4% depositary receipts. The sale was orchestrated by NLFI, the state entity responsible for holding the government's stake in the bank. The trading plan that led to this sale was initially announced back in February and executed by Citigroup (NYSE:C) Global Markets Europe.
This reduction of stake comes approximately a year after Sigrid Kaag, the Dutch Finance Minister, requested NLFI to assess the conditions under which the government's holding could be decreased. The most recent sale before this week's event was conducted in September 2017, when the government sold off a 7% stake for approximately €1.5 billion ($1.6 billion).
The Dutch government had to intervene during the financial crisis to save ABN Amro with a €22 billion bailout. This intervention transformed ABN Amro from being one of the largest banks globally into a lender primarily focused on serving domestic consumers. Following the bailout, ABN Amro made a return as a publicly traded company in November 2015 when the Dutch government sold off a 23% stake in an initial offering.
This recent move indicates a continued effort by the Dutch government to reduce its involvement in commercial banking operations and further distance itself from its role as a majority shareholder since its intervention during the financial crisis.
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