To use the proceeds to repay E1 billion of the total E3 billion of core capital obtained from Vereniging AEGON, funded by the Dutch State
AEGON plans to raise up to E1 billion through an equity issue by an accelerated bookbuild. The company intends to use the proceeds of the equity issue to repay up to E1 billion of the total E3 billion of core capital obtained last year from its largest shareholder, Vereniging AEGON, funded by the Dutch State.
The decision to repay by December 1, 2009, is conditional on AEGON’s capital position, outlook for the economy and financial markets not deteriorating materially. The repayment further requires the formal consent of the Dutch Central Bank (DNB).
AEGON would effect the repayment by exercising its option to repurchase up to 250 million convertible core capital securities (CCCS) by December 1, 2009 at a price between E4 and E4.52 per security, depending on both the share price and timing of repurchase.
Repurchasing by December 1, 2009 would permit AEGON to avoid having to pay E6 per security after December 1, 2009. In addition AEGON would not be required to pay future coupons of at least 8.5% per annum on the repurchased amount.
In order to raise E1 billion, AEGON will use the authorisation of the annual shareholders’ meeting to issue new shares up to 10% of the issued common share capital, and will issue such number of treasury shares as necessary.