Citi has found a Southeast Asia buyer in UOB and has agreed to sell to it the consumer banking units of four markets in the region.
Citi has reached an agreement with UOB to sell its consumer banking units in Indonesia, Malaysia, Thailand and Vietnam for around S$4.9 billion ($3.6 billion), according to a statement.
The deal includes cash consideration for the net assets of the acquired businesses (about S$4 billion) in addition to a premium of S$915 million for Citi’s retail banking and credit card businesses in the four countries.
Citi also has approximately 5,000 consumer bank and supporting employees who are expected to transfer to UOB after the transaction as part of the deal.
ASEAN Sale
The latest deal will mark the end of the sale of Citi’s ASEAN consumer banking assets after it inked an agreement with Unionbank to buy its Philippines retail business last month.
«We are excited to announce this transaction with UOB, a leading pan-Asian institution,» said Citi’s APAC chief executive Peter Babej. «We are confident that UOB, with its strong culture and broad regional ambitions, will provide excellent opportunities and a long-term home for our consumer banking colleagues in Indonesia, Malaysia, Thailand and Vietnam.»
«UOB believes in Southeast Asia’s long-term potential and we have been disciplined, selective and patient in seeking the right opportunities to grow,» added UOB deputy chairman and CEO Wee Ee Cheong.
