Citigroup Inc. (NYSE: C)
October 01, 2009
Citi Successfully Completes Sale of Nikko Cordial Securities to Sumitomo Mitsui Banking Corporation
Signs Alliance Agreement with Sumitomo Mitsui Financial Group
Tokyo – Citi (NYSE:C) today announced the successful completion of the sale of Nikko Cordial Securities to Sumitomo Mitsui Banking Corporation.
The transaction has a total cash value to Citi of ¥776 billion (US$8.7 billion at an exchange rate of ¥89.60 to US$1.00 as of September 30, 2009). The cash value is comprised of the purchase price for the transferred business of ¥545 billion, the purchase price for certain Japanese-listed equity securities held by Nikko Cordial Securities of ¥30 billion, and ¥201 billion of excess cash derived through the repayment of outstanding indebtedness to Citi.
The transaction will result in Citi recognizing an immaterial after-tax gain during the fourth quarter. A total of about 7,800 employees are included in the transaction.
Citi also signed a strategic alliance agreement with Sumitomo Mitsui Financial Group as contemplated by Citi's press release on May 1, 2009. The main focus of the alliance is to build upon the longstanding partnership between Citigroup Global Markets Japan and Nikko Cordial Securities to bring the very best financial products, services and advice to clients in Japan and globally.
Citi's Institutional Clients Group advised Citi on this transaction.
Citi
Citi, the leading global financial services company, has approximately 200 million customer accounts and does business in more than 140 countries. Through Citicorp and Citi Holdings, 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, and wealth management. Additional information may be found at www.citigroup.com or www.citi.com.
Statements regarding Citi's gain on the transaction and the strategic alliance agreement with Sumitomo Mitsui Financial Group (SMFG) are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a variety of factors, including completion of the analysis of the tax treatment of the transaction and client acceptance of the products, services and advice offered by Citi and SMFG pursuant to the strategic alliance agreement.