Cash now, cash later: ING converts deal

In a statement, ING New Zealand chief, Helen Troup, said “in response to positive feedback on the [original] proposal” the group would allow investors in the Diversified Yield Fund (DYF) and Regular Income Fund (RIF) to split their withdrawals between cash now and a further payment in five years' time.

Under ING's proposal late in February, the group offered to pay DYF/RIF investors 60-62 cents per unit if they chose to cash in their investments immediately or 83-86 cents per unit in five years' time. However, the initial deal required investors to select only one option.

ING has planned a national roadshow in May to showcase its offer to investors in the beleagured CDO funds ahead of unit-holder votes on the proposals in June.

“Although we are still developing the detail of our formal offer, we are continuing to communicate directly with investors and their advisers as and when we have new information,” Troup said in the statement. “We are currently developing comprehensive information packs so that investors are able to make an informed decision about our offer.”