Citi Announces Agreement to Sell Consumer Bank in Indonesia, Malaysia, Thailand and Vietnam to UOB Group
January 13 2022 - 7:42PM
Business Wire
Citi Continues to Execute on Global Consumer
Bank Strategic Actions
Citi today announced it has reached agreement with UOB Group
(UOB) on the acquisition of Citi’s consumer banking franchises in
Indonesia, Malaysia, Thailand and Vietnam. The transaction includes
retail banking and credit card businesses but excludes the bank’s
institutional businesses in all four countries. Citi remains
committed and focused on serving institutional clients in these
countries locally, regionally and globally.
The agreement covers all related Citi staff, with approximately
5,000 consumer bank and supporting employees expected to transfer
to UOB upon close of the proposed transaction. UOB will pay Citi
cash consideration for the net assets of the acquired businesses,
subject to customary closing adjustments, plus a premium of S$915
million [US$690 million].
Upon closing, Citi expects the transaction to result in the
release of approximately US$1.2 billion of allocated tangible
common equity, as well as an increase to tangible common equity of
over US$200 million. As previously announced, Citi’s exit from its
consumer franchises in 13 markets across Asia Pacific and EMEA is
expected to release approximately US$7 billion of allocated
tangible common equity over time.
Peter Babej, Citi Asia Pacific CEO, said, "We are excited to
announce this transaction with UOB, a leading pan-Asian
institution. We are confident that UOB, with its strong culture and
broad regional ambitions, will provide excellent opportunities and
a long-term home for our consumer banking colleagues in Indonesia,
Malaysia, Thailand and Vietnam. Focusing our business through these
actions will facilitate additional investment in our strategic
focus areas, including our institutional network across Asia
Pacific, driving optimal returns for Citi.”
Mark Mason, Citi CFO said, “The sale of these four consumer
markets, along with our previously announced transactions,
demonstrate our sense of urgency to execute our strategic refresh.
We are committed to working in the best interests of our
shareholders by focusing our resources on businesses that can
deliver growth, as well as increasing the capital we return to
shareholders over time.”
UOB was selected by Citi following an extensive and competitive
auction process. Citi is committed to a seamless transaction, and
during the transition to closing, there will be no change in
service provided to our consumer banking and wealth customers.
Completion of the divestitures in each country will not be
conditional on the completion of the divestitures in the other
countries but will be conditional on obtaining regulatory approvals
relevant to each country. It is estimated that completion will take
place between mid-2022 and early 2024, depending on the progress
and outcome of the regulatory approval process.
Citi’s Banking, Capital Markets and Advisory Group is acting as
exclusive financial advisor to Citi in respect of the
transaction.
About Citi
Citi, the leading global bank, has approximately 200 million
customer accounts and does business in more than 160 countries and
jurisdictions. Citi provides consumers, corporations, governments
and institutions with a broad range of financial products and
services, including consumer banking and credit, corporate and
investment banking, securities brokerage, transaction services, and
wealth management.
Additional information may be found at www.citigroup.com |
Twitter: @Citi | YouTube: www.youtube.com/citi | Blog:
http://blog.citigroup.com | Facebook: www.facebook.com/citi |
LinkedIn: www.linkedin.com/company/citi
Certain statements in this release are “forward-looking
statements” within the meaning of the rules and regulations of the
U.S. Securities and Exchange Commission (SEC). These statements are
based on management’s current expectations and are subject to
uncertainty and changes in circumstances. These statements are not
guarantees of future results or occurrences. Actual results and
capital and other financial condition may differ materially from
those included in these statements due to a variety of factors.
These factors include, among others, the successful wind down
and closure of these consumer banking businesses, including within
the expected timeframe, macroeconomic and local market conditions,
consumer preferences, and the precautionary statements included in
this release. These factors also consist of those contained in
Citi’s filings with the SEC, including without limitation the “Risk
Factors” section of Citi’s 2020 Form 10-K. Any forward-looking
statements made by or on behalf of Citi speak only as to the date
they are made, and Citi does not undertake to update
forward-looking statements to reflect the impact of circumstances
or events that arise after the date the forward-looking statements
were made.
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version on businesswire.com: https://www.businesswire.com/news/home/20220113005931/en/
Media Enquiries: James Griffiths Citi Corporate Affairs, Asia
Pacific 852-2868-7668 james.a.griffiths@citi.com
Investor Contact: Jennifer Landis 212-793-2014
Jennifer.am.landis@citi.com
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