reached an agreement to sell its consumer banking franchises in Indonesia, Malaysia, Thailand, and Vietnam to Singapore’s
UOB will pay Citigroup (ticker: C) for the net assets of the acquired businesses plus a premium of 915 million Singapore dollars ($690 million).
UOB said in a statement Friday that Citigroup’s consumer business had an aggregate net asset value of about 4 billion Singapore dollars ($2.98 billion).
The transaction includes Citigroup’s retail banking and credit card businesses in all four countries but excludes the bank’s institutional businesses.
“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,” said Peter Babej, Citi Asia Pacific CEO. “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.”
About 5,000 of Citigroup’s consumer bank and supporting employees are expected to be transferred to UOB after the deal closes.
Citigroup previously had announced its intentions to exit from its consumer franchises in 13 markets across Asia Pacific and Europe.
Earlier this week, the bank said it plans to exit its Mexico consumer banking business.
Citigroup reported fourth-quarter adjusted earnings on Friday of $1.99 a share, beating analysts’ forecasts. The stock was down 2.8% to $65.88.
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