Citi Raises Cash With Nikko Sale |
| Forbes - May 1, 2009 |
By selling Japanese brokerage house Nikko Cordial to Sumitomo Mitsui Bank, Citigroup may be able to ease through the Fed’s capital stress tests. The deal, however, will bring an end to Citigroup's ambition to fully expand into the world’s second-largest economy.
Citigroup ( C - news - people ) said Friday that it had reached a definitive agreement to sell Nikko Cordial Securities, its Japanese securities business, to Sumitomo Mitsui Banking Corporation, for 774.5 billion yen ($7.9 billion).
The big cheque from Sumitomo Mitsui Bank, a subsidiary of Sumitomo Mitsui Financial Group ( SMFNF - news - people ) (SMFG), covers the purchase price of 545 billion yen ($5.5 billion) for Nikko Cordial’s business, 28.5 billion yen ($287.2 million) for certain Japanese-listed equity securities held by Citi, and 201 billion yen ($2.0 billion) for the excess cash in Nikko Cordial or repayment of its outstanding indebtedness to Citi.
Read Full Article from Forbes
- Posted: 2009-05-01 09:31:48
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