Business NEWS
Citi sells Nikko Cordial to Sumitomo Mitsui Banking Corp. SMFG
By Elizabeth Haggar for CEOWORLD Magazine Updated:October 1, 2009
Get CEOWORLD Magazine digital monthly version. special- Top Capital Cities for a business Traveler, # Interview with Minister of Tourism of Greece. 1 Issues Subscription= $1 Only, 10 Issues Subscription= $5 Only. Grab your copy now!!!!
Citi (NYSE:C) today announced the successful completion of the sale of its entire stake in Nikko Asset Management (”Nikko AM”) to The Sumitomo Trust and Banking Co., Ltd. (”Sumitomo Trust”) as part of a transaction that values Nikko AM at ¥120 billion (US$1.3 billion at an exchange rate of ¥89.60 to US$1.00 as of September 30, 2009).
Citigroup (C.N) received all-cash consideration of ¥75.6 billion (US$844 million), after certain deal related expenses and adjustments, for its 64% beneficial ownership interest in Nikko AM. Sumitomo Trust also acquired the beneficial ownership interests in Nikko AM held by various minority investors in Nikko AM, bringing Sumitomo Trust’s total ownership stake in Nikko AM to 98.55% at closing.
As previously announced, the transaction is not expected to have a material impact on Citi’s net income.
Citigroup (C.N) completed the sale of its Japanese brokerage Nikko Cordial Securities to Sumitomo Mitsui Financial Group (8316.T), one more step in the U.S. bank’s plans to shed non-core assets.
Citigroup said on Wednesday the sale to Sumitomo Mitsui (SMFG), Japan’s third-largest bank, had a total cash value of $8.7 billion, including retained cash and debt payments.
The cash and debt transaction, valued at 776 billion yen ($8.7 billion), involves 7,800 employees through the sale of Nikko Securities Inc. and parts of Nikko Citigroup’s Japan operations. The new entity is named Nikko Cordial Securities Inc.
Citigroup, which received billions in taxpayer funds to survive the financial crisis, said it will book an immaterial after-tax gain on the deal in the fourth quarter. The sale was first announced in May.
Sumitomo Mitsui is the first Japanese bank to buy a top brokerage in Japan — marking a major realignment in the country’s financial sector.
At a ceremony held Thursday in Tokyo, Sumitomo Mitsui Banking’s Corp. President Masayuki Oku said he hopes the new entity becomes a “model for integration of banking and brokerage businesses,” according to Kyodo news agency.
Citigroup also said it signed a strategic alliance agreement with parent Sumitomo Mitsui Financial Group Inc.
Related Reading:
BusinessThe Ninth Edition of this bestselling introductory text features a completely up-to-date, comprehensive survey of the functional areas of business: ma... Read More >
Small Business For DummiesWant to start the small business of your dreams? Want to breathe new life into the one you already have? Small Business For Dummies, 3rd Edition provi... Read More >
The Secret Language of Business: How to Read Anyone in 3 Seconds or LessThe Secret Language of Business reveals the secrets of body language and nonverbal communication. Successful professionals need more than just good co... Read More >
Start Your Own BusinessYOUR ROAD MAP to BUSINESS SUCCESS
From the editors of Entrepreneur magazine, this bestselling business startup book has helped hundre... Read More >
Understanding BusinessUnderstanding Business by Nickels, McHugh, and McHugh has been the number one textbook in the introduction to business market for several editions for... Read More >
Like this article!
(No Ratings Yet)
Loading ...17114 views
Comments
Grab a copy of CEOWORLD Magazine for $1 only!!!
