Citi to Sell Nikko Asset Management to Sumitomo Trust

July 30, 2009

Citigroup Inc. announced that it has reached a definitive agreement to sell its entire ownership interest in Nikko Asset Management to The Sumitomo Trust and Banking Co., Ltd.

Citigroup Inc. (“Citi”) announced that it has reached a definitive agreement to sell its entire ownership interest in Nikko Asset Management (“Nikko AM”) to The Sumitomo Trust and Banking Co., Ltd. (“Sumitomo”).  The transaction values Nikko AM, one of Japan’s largest asset managers, at ¥120 billion (approximately US$1.26 billion).  Under the terms of the transaction, Citi will receive ¥75.6 billion (US$795 million) in cash, after certain deal related expenses and adjustments, for its entire 64% beneficial ownership interest in Nikko AM.  It is anticipated that Sumitomo, after efforts to acquire ownership interests held by various minority investors, will bring its ownership stake in Nikko AM up to 98.5% at closing.  The remaining 1.5% of the ownership interest will continue to be held by an employee stock ownership plan.  The transaction, which is expected to close in the forth quarter of 2009, is subject to regulatory approvals and customary closing conditions. 

Nikko AM is Japan’s third largest fund manager with roughly ¥9 trillion of assets under management.  Sumitomo, Japan’s largest listed trust bank, will increase its assets under management to approximately ¥35, as a result of the transaction. 

To view the Press Release, go to http://www.citibank.com/citi/press/2009/090730a.htm


Categories

Investment Manager M&A, Transactions