Citigroup to sell stake in Bellsystem24 to Bain Capital for $1.12 billion
16 Nov 2009
Citigroup Inc. has agreed to sell its stake in Japanese call-centre operator Bellsystem24 to US private equity firm Bain Capital for 93.5 billion yen ($1.12 billion) as part of the company's strategy to sell off non-core assets in order to raise its capital.
Tokyo-based Citigroup Capital Partners Japan (CPJ), a private-equity arm of Citigroup is selling Japan's largest call centre operator Bellsystem24, which CPJ, known earlier as Nikko Principal had acquired Bellsystem24 in 2004 for 220 billion yen.
Citigroup said in a release that it had agreed to sell its 93.5 per cent stake in Bellsystem24 for 93.5 billion yen in cash in a tender offer to be launched by an acquisition corporation owned by investment funds advised by Bain Capital.
The tender offer will likely to be launched on or before 20 November and be completed on 30 December.
After completion of this transaction, Citigroup's assets will be reduced by $1.2 billion, in line with Citi's goal to reduce the assets in Citi Holdings while optimising their value.
The New York-based bank said that it is not expected to have a material impact on Citi's net income or its capital ratios.