GRUPOSURA Signs Agreement to Acquire the Pensions, Insurance and Investment Fund Operations of ING Group in Latin America

USA - English

• Latin America - español

MEDELLIN, Colombia, July 25, 2011 /PRNewswire/ -- Grupo de Inversiones Suramericana S.A. today signed an acquisition agreement with the multinational ING Group to acquire their pension, insurance and investment funds operation in Chile, Mexico, Peru, Uruguay and Colombia. GRUPOSURA will become the Latin American leader in mandatory pension funds, complementing and strengthening its existing activities in consumer savings and investments in the region. The transaction value of EUR 2,615 million (USD 3,763 million) reflects 1.8x book value and results in a 14.9x multiple of estimated 2012 earnings, excluding the benefit of any new cross-selling.

The agreement reflects the largest acquisition ever by a Colombian company. It is also the largest cross-border acquisition within the Latin American region ever.

With the acquisition of ING's assets in Latin America, GRUPOSURA positions itself as a solid and dynamic company with a strategic presence in the region. The transaction creates significant potential benefits for current and future investors.

"This acquisition expands GRUPOSURA's presence in the region and continues our growth and internationalization strategy. ING's operating strength and experience will complement our existing platform and will drive value for our current and future investors," stated David Bojanini, CEO of GRUPOSURA.

GRUPOSURA will maintain the acquired companies' current strategy and vision for growth, the quality of its portfolio management and its strong corporate governance.

"The similarities between the ING business model and the pension operations of GRUPOSURA create an opportunity to increase the value of services for our clients.  This acquisition strengthens our participation in the market and confirms our commitment to a variety of Latin American countries," added David Bojanini.

The acquired companies currently serve more than 10 million clients, have in excess of USD 70 billion in assets under management and employ nearly 7,000 employees in those five countries.  In 2010 the business reached profits of more than USD 275 million.

By executing this transaction, GRUPOSURA adds value to its portfolio, almost doubling the dividends that it expects to receive from its investments over the next few years. It is expected that the companies acquired today will be integrated into Grupo de Inversiones Suramericana's portfolio in 2012 to add an expected USD 172 million in dividends.

GRUPOSURA has multiple financing alternatives for this transaction, including internal resources, lines of credit with national and international banking entities, support from investors from international investment funds, as well as the authorization to issue non-voting preferred shares. This issuance of preferred shares is expected to take place before the end of 2011.  The number of shares to be issued is well below the maximum authorized by shareholders in the Extraordinary Shareholder's Meeting of June 20th, and pro-forma dividends income per share in 2012 are expected to increase by more than 40%.

The transaction will be subject to the review and approval of the relevant regulatory entities in each country. This process is expected to be finalized over the next few months.

In addition, it is important to mention that this process was led by the team of Grupo de Inversiones Suramericana, with support from and close coordination with foreign advisors. The Investment Banking teams from UBS Investment Bank and Bancolombia were the exclusive financial advisors for GRUPOSURA in this transaction.

ABOUT GRUPO DE INVERSIONES SURAMERICANA

Grupo de Inversiones Suramericana, with more than 8,000 shareholders, is a regional Latin American company, listed in the Colombian Stock Market and registered in the ADR- Level 1 program in the United States and in Latibex, the Latin American securities market in the Madrid Stock Market. It has the highest qualifications in business management, supported with the International Investment Grade rating from S&P and Fitch Ratings. GRUPOSURA is a holding company whose investments are leaders in Colombia with presence in several American countries. Its trajectory includes 67 years of experience and investments in banking, insurance, pensions and unemployment insurance, processed foods, cement and energy. Its financial businesses enjoy leading positions, including the number one player in insurance and the number two player in pensions in Colombia.

These are the consolidated numbers of GRUPOSURA, with the announced acquisition added to the current operations of the following companies that are a part of the Company's strategic investment portfolio: Bancolombia, Suramericana, Proteccion and Enlace Operativo:

• 25 million clients
• Assets under management: USD 121 billion
• Presence in eight Latin American countries: Chile, Mexico, Peru, Uruguay, Panama, Dominican Republic, El Salvador and Colombia, in addition to offices in Miami, Cayman Islands and Puerto Rico.
• 37,000 employees

*At the exchange rate, July 22, 2011: EUR 1 = USD 1.4391

*For the purposes of this press release, any and all references to the holding company, Grupo de Inversiones Suramericana (GRUPOSURA), shall be understood to extend to all the strategic investments that make up its portfolio, namely Bancolombia, Suramericana, Proteccion and Enlace Operativo. These investments shall be complemented by all those Latin American companies to be purchased from ING Group, as part of the acquisition announced today.

Contacts:

SOURCE Grupo de Inversiones Suramericana S.A.

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