ING Bank Exercises Greenshoe for 2.88% Stake in KDD Group
15 January 2008
According to Interfax, the London branch of ING Bank exercised a greenshoe (over-allotment option) for 2.88% stake in KDD Group at a price of GBP 2.0 per share. Thus, KDD’s total free float amounts to GBP 73.1 mln (22.6%). KDD Group was placed on LSE AIM on December 14, 2007. Alexander Romanov: The over-allotment option execution at the placement price implies a low P/NAV of 0.7. The deal at the discount to peer stocks must signal that the market perceives back-end loaded KDD Group’s portfolio as inherently riskier due to a serious financing issue (needs USD 2.0 bln in external funds in 2008-2010).
