The Dutch parent company of ING Canada Inc. is selling a $1.75 billion stake in the Canadian P&C insurance subsidiary.

ING Canada Inc. said Tuesday that ING Insurance International B.V., a wholly owned, indirect subsidiary of ING Groep N.V., has agreed to sell about $905 million of its shares based on a price of $25 per share in the Canadian operation to institutional investors on a private placement basis.

The company said it also separately intends to sell an additional $1.123 million in shares at a price of $26.35 per share in a “bought deal” public offering led by CIBC World Markets Inc. and TD Securities Inc.

That’s a 22% discount to the closing price of ING Canada Tuesday on the Toronto Stock Exchange.

The underwriters has also been granted an over-allotment option to purchase up to an additional 5,124,000 common shares at the offering price.

“With the proposed transactions, for the first time in recent history, a Canadian-listed and controlled company will assume the leadership position in the Canadian home, auto and business insurance industry,” said Charles Brindamour, president and CEO of ING Canada, in a news release.

ING Group said the transactions will not affect the group’s current ownership of ING Bank of Canada, known as ING DIRECT, which is a separate and distinct company from ING Canada.

IE