Less than a week after announcing the sale of its 40% stake in Hungarian K&H Bank to KBC, ABN AMRO has announced further organizational changes, effective January 1, 2006, which include the intention to divest Bouwfonds, a 100% subsidiary based in Hoevelaken, the Netherlands.
ABN AMRO reports that it is taking these significant steps to dispose of non-core assets. The main activities of Bouwfonds are property development, property finance and management of property funds.
ABN AMRO intends to start the divestment process in the first quarter of 2006. On basis of the nine month year to date results, Bouwfonds’ remaining revenues after the transfer of the mortgage portfolio to the BU Netherlands will be approximately EUR 360 mln, operating result of EUR 150 mln, net profit of EUR 95 mln and Risk Weighted Assets of EUR 12 bln.
ABN AMRO also announced that it has awarded a five year contract to MCI for the provision of Global Managed Data Network and Firewall Services. The contract has a total value of EUR 500 mln. It consolidates 380 separate contracts and has a worldwide scope and involves more than 6,000 locations. The transition period will be between six and 24 months, in which close to 140 staff will be transferred.