ING, the Dutch financial services group that has been selling off private banking assets around the world, has secured shareholder approval for both a multi-billion euro rights issue to pay back state funds, along with a reorganisation of its business lines.

At an extraordinary general meeting yesterday, ING’s shareholders gave their assent to a €7.5 billion ($11.3 billion) rights issue, along with the separation of the firm’s banking and insurance operations - including investment management.

One of ING’s stated aims for its “back to basics” programme is to reduce the complexity of the group; negotiations with the European Commission have acted to accelerate the decision to restructure, ING said in a statement.

ING said it plans next month to execute the early repurchase of 50 per cent (€5 billion) of the Core Tier 1 securities taken by the Dutch state during the credit crisis. Funds raised from the rights issue will also be used to cushion the impact of additional payments which will be made to the state linked to its Illiquid Assets Back-up Facility. These extra payments – which were a condition of the European Commission’s approval of the firm’s restructure – will amount to a net present value of €1.3 billion.