Salem Radio Network News Friday, January 21, 2022

Business

Singapore’s UOB to buy Citi retail operations in 4 countries for $3.65 billion

By Anshuman Daga

SINGAPORE (Reuters) – Singapore lender United Overseas Bank (UOB) has agreed to buy Citigroup’s consumer businesses in Indonesia, Malaysia, Thailand and Vietnam for about S$4.915 billion ($3.65 billion), funding the purchase with the bank’s excess capital.

UOB, which already has a large presence in Southeast Asia, said in a statement that it would acquire Citi’s unsecured and secured lending portfolios, wealth management and retail deposit businesses in the four countries.

“UOB believes in Southeast Asia’s long-term potential and we have been disciplined, selective and patient in seeking the right opportunities to grow,” said Wee Ee Cheong, UOB’s deputy chairman and chief executive.

The bank said the proposed acquisition is expected to be financed through its excess capital, and that it remains comfortable maintaining its dividend policy of a 50% dividend payout ratio.

“The total cash consideration for the proposed acquisition, will be calculated based on an aggregate premium equivalent to S$915 million plus the net asset value of the consumer business as at completion,” UOB said.

It said Citigroup’s consumer business in these markets had an aggregate net asset value of about S$4 billion and a customer base of about 2.4 million as at 30 June 2021. These generated income of about S$0.5 billion in the first half of 2021.

($1 = 1.3461 Singapore dollars)

(Reporting by Anshuman Daga in Singapore; Additional reporting by Indranil Sarkar in Bengaluru; Editing by Rashmi Aich and Kenneth Maxwell)

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