London Citigroup Inc. today announced that it has sold 396 million common shares in Akbank T.A.S. (Akbank) through an equity offering representing its entire 9.9 percent equity interest in the company for TRY7.45 per share. Total proceeds from the transaction are expected to be approximately US$1.15 billion at the current exchange rate, with no material financial impact to Citigroup.
Sabanci Holding and Citigroup have expressed their mutual satisfaction at their partnership since 2007.
Citigroup has been in Turkey for 40 years and aims to grow its Turkey Franchise. Citigroup, with an employee base of 500 in Turkey, remains committed to serving its corporate and commercial clients in the country, including medium and large corporations, financial institutions, public entities, and subsidiaries of foreign multinational companies. Citibank A.S. is recognized as the market leader in securities services with more than 45 percent custody market share of equities held by foreign investors and executing almost half of the securities clearing and settlement transactions related with foreign investors in Turkey. Citibank A.S. accounts for more than 15 percent of the total value of payments through the local currency payment system.
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.
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Certain statements in this release, including the estimated financial and capital impacts to Citi as a result of its sale of 9.9 percent of Akbank shares, are “forward-looking statements” within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results and capital and other financial condition may differ materially from those included in these statements due to a variety of factors, including but not limited to the completion of the final analysis of the financial, accounting and capital impact on Citi as a result of the sale. More information about these factors and other factors that may affect Citigroup's future results is contained in Citigroup's filings with the U.S. Securities and Exchange Commission, including without limitation the “Risk Factors” section of Citigroup’s 2011 Annual Report on Form 10-K. Precautionary statements included in such filings should be read in conjunction with this document.