Search
 

Citigroup Selling Asset Management Business

NEW YORK CITY-Citigroup inks a deal to sell its asset management business to Legg Mason Inc. for approximately $3.7 billion.

By Barbara Jarvie | Updated on June 24, 2005

NEW YORK CITY-Citigroup signed a definitive agreement to sell substantially all of its asset management business in exchange for the broker-dealer business of Legg Mason Inc. The deal includes approximately $1.5 billion of Legg Mason’s common and convertible preferred shares and approximately $550 million in the form of a five-year loan facility provided by Citigroup Corporate and Investment Banking. The total value is approximately $3.7 billion with Citigroup expected to receive an after-tax gain of approximately $1.6 billion at closing.

“We have been assessing our options for the asset management business and have found, in Legg Mason, a partner with an excellent product set that both complements and enhances our existing product offering to our customers,” says Citigroup CEO Charles Prince.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.