Financial services provider Citigroup will be selling its Japanese securities and key investment banking businesses to Sumitomo Mitsui Financial Group as part of a deal valued at $7.9 billion, says a media report.
The UK-daily Financial Times has reported the deal worth 774.5 billion yen (about $7.9 billion) would help in boosting the troubled Citi's capital.
"Citigroup is selling its Japanese securities business and key investment banking business to Sumitomo Mitsui Financial Group (SMFG) as part of a deal worth 774.5 billion yen ($7.9 billion)...," the report noted.
"Japan’s third-largest bank is paying 545 billion yen for Citi’s Japanese securities business, which is mainly comprised of Nikko Cordial Securities, and a further 28.5 billion yen for Japanese-listed securities held by Citi," the report published online said.
In addition, Vikram Pandit-led Citi is to receive 201 billion yen in cash by either retaining excess cash held in Nikko Cordial or by receiving repayment of debt owned by the Japanese brokerage to Citi.
