Voya Financial Inc (NYSE:VOYA) announced that ING Group has entered into an agreement to sell around 32 million shares of the company’s common stock. The issues will be priced at $44.20 per share. The shares will be sold to the underwriters that handled the previous public offering for the company as specified in that original agreement. Voya will not be issuing or selling the stock and will not receive any of the proceeds from the transaction. The company also agreed to buyback another 13.6 million shares from ING Group for $600 million. The price per share comes out to $44.12. All told, ING Group is selling 45.6 million shares.
Share Buyback Program
This completes the groups exit from the stock and the relinquishing of its 19% share of the company. ING Group will continue to possess warrants for 26 million shares that can be exercised at a strike of $48.75 per share. These are subject to adjustments if need. Once this deal is complete, Voya will still have around $161 million left in its current share repurchase program. Citigroup and Bank of America are handling the program for Voya Financial Inc (NYSE:VOYA), which is expected to happen on March 9, 2015.
Strong Fourth Quarter
The company recently reported strong earnings for the fourth quarter of 2014. It earned 99 cents per share for that period which beat all estimates by 24 cents. This lead to the announcement of the share buyback program and boosted the company’s stock to recent highs. Voya Financial Inc (NYSE:VOYA) is company that’s model basket is filled with premier retirement, investment and insurance companies. They provide services to over 13 million individual and institutional clients. Their vision is to be Americas Retirement Company and focus on helping challenged retirees and also preparing younger people for retirement.
The stock is very healthy and is trading at its 52-week high. Momentum is strong and there is no weakness in the strength indicators. There is strong support at $43 and a slight retrace to that point may be in the cards before any more acceleration.