Citigroup to sell 4.9 percent to Abu Dhabi

Source: Exec Digital USA

Date :27/11/2007 09:03:07

Citigroup will sell $7.5-billion of equity units stake to long-term investor Abu Dhabi Investment Authority(ADIA), the investment bank announced on Monday.

Abu Dhabi has agreed to buy a 4.9 percent equity stake in a complex transaction that has been approved by U.S. regulators.

Through the deal, ADIA will become Citi’s largest shareholder owning a 4.9 percent in the firm and meaning that nearly ten percent of Citi will be controlled by Middle Eastern investors.

"This investment, from one of the world's leading and most sophisticated equity investors, provides further capital to allow Citi to pursue attractive opportunities to grow its business," said Win Bischoff, Citi's Acting Chief Executive Officer.

Share value

The Abu Dhabi Investment Authority (ADIA) has agreed not to own more than a 4.9 percent stake, and will have no special rights of ownership and no role in the management or governance of the bank, Citigroup said.

ADIA will buy securities in the group which offer an annual payment rate of eleven percent. The bonds will eventually be converted into shares between March 2010 to September 2011, at a price of between $31.83 and $37.24 each.

"This investment reflects our confidence in Citi's potential to build shareholder value," said ADIA's Managing Director, Sheikh Ahmed Bin Zayed Al Nahayan.

The investment is expected to close within the next several days.

November 27, 2007