APG is one of the largest pension providers in the world, managing approximately €600 billion in pension assets for over 4.5 million participants, primarily on behalf of ABP.
When ABP announced within its "Strategy 2030" that APG would henceforth perform asset management exclusively for ABP, this led to a fundamental difference of opinion with Stichting Sociaal Fonds Bouwnijverheid (“SFB”), the minority shareholder affiliated with client bpfBOUW. SFB proposed a buy-out by ABP as an alternative. Maasdael was asked to first prepare the valuation of this minority stake and subsequently guide the entire sale process.
The challenge
Due to the limited information available, the valuation had to be built up mainly from the annual accounts. This was a complex exercise, as large, one-off costs for the system change ran through the figures and masked the actual profitability. At the same time, the initial valuation positions of both shareholders were far apart, and a hard deadline hung over the process: the shareholders' meeting where it would be decided whether the sale would proceed.
Beyond the deal
Maasdael started with a thorough analysis of public information, sector publications, and market trends, with a specific focus on the financial impact of the pension transition within APG. This resulted in a well-founded valuation report, in which the one-off transition costs were isolated in figures to make the underlying profitability clear.
Based on the quality of this report, Maasdael was subsequently also awarded the mandate for the sales process. In a series of intensive discussions, Maasdael brought the positions of both parties closer together, supported by clear arguments on valuation methodologies and market practices. This led to a successful sale of SFB's 7.84% stake. The transaction was completed within the set timeframe, with SFB and APG parting on good terms.
The value of sector knowledge
The transition to the new Dutch pension system is putting pressure on pension providers: higher one-off costs, strategic reorientation. APG is a prime example of this. Maasdael is familiar with the dynamics of this sector: the relevant regulations, the specific value drivers, and the considerations involved in transactions with large institutional parties.
