RTTNews | Jan 14, 2022 01:43AM EST

01:43 Friday, January 14, 2022 (RTTNews.com) - Banking major Citigroup Inc. (C) announced that it has reached deal with UOB Group (UOB), a Singaporean banking company, to sell its consumer banking franchises in Indonesia, Malaysia, Thailand, and Vietnam.

The transaction is expected to be complete during the period between mid-2022 and early 2024.

Mark Mason, Citi CFO commented: "The sale of these four consumer markets, along with our previously announced transactions, demonstrates 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 will pay cash consideration to Citi for the net assets of the acquired businesses, subject to customary closing adjustments, and in addition a premium of S$915 million or around $690 million.

The transaction includes retail banking and credit card businesses, but excludes the bank's institutional businesses in all four Asian countries.

With the closing of the deal, approximately 5,000 consumer bank and supporting staff of Citi will be transferred to UOB. Upon closing, the American lender expects the transaction to result in the release of approximately $1.2 billion of allocated tangible common equity, as well as an increase to tangible common equity of over $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 $7 billion of allocated tangible common equity over time.

Read the original article on RTTNews ( https://www.rttnews.com/3254992/citi-to-sell-four-asian-units-to-singapore-s-uob-group.aspx)

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