Dutch state to cut ABN Amro stake to 10.5% from 20.7% via trading plan

The Dutch government, via its holding firm NLFI, intends to gradually reduce its ownership in ABN Amro, ultimately owning only 10.5% of the bank's shares from a current 20.7%, according to a new trading strategy disclosed on Wednesday. NLFI, which currently holds the depositary receipts representing the Dutch State’s stake in ABN Amro, plans to sell these through the proposed plan.

At a certain point during this process, NLFI's stake in ABN Amro could dip below 15% of the bank's total issued share capital. Under the existing Relationship Agreement between NLFI and ABN Amro, new terms for NLFI's information rights would be mutually agreed upon in a spirit of cooperation once NLFI's shareholding falls below 10%.

Should NLFI's ownership drop below this threshold, the Relationship Agreement would terminate altogether. This trading approach marks the fifth consecutive strategy since ABN Amro's initial public offering in November 2015, following prior reduction efforts via accelerated book builds. The Dutch State has consistently expressed its intention to gradually diminish its stake in ABN Amro through NLFI over time.