Prospective Suitors Ready for Citi’s Asia Retail Sale Deadline
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Binding bids for Citigroup’s retail assets across Asia are due within the coming week with interest drawn from both fellow global banks and local players.
Binding bids for Indonesia, the Philippines, Taiwan, and Thailand are due on Friday, according to a «Bloomberg» report citing unnamed sources, with offers for India due next week. Deliberations are ongoing and potential buyers could decide not to proceed with their offers.
This is part of Citi’s ongoing plans to unload its retail assets in 13 markets across Asia and Europe, the Middle East, and Africa with its Australian unit sold to NAB in August.
A sale of Citi’s Taiwan retail assets could raise about $2 billion to $4 billion, according to the report, depending on which assets are included.
In April, Taiwan’s government said it would monitor and prevent Citi from transferring high net worth clients to its units in Hong Kong and Singapore.
Banks planning to make bids include DBS, Standard Chartered, Cathay Financial Holding Co, and Fubon Financial Holding Co., the report added.
Citi’s Thailand assets is valued at over $2 billion with Bangkok Bank planning to make an offer.
Mitsubishi UFJ-owned Bank of Ayudhya is also weighing a bid.
The Indonesia unit is valued at as much as $1 billion with DBS planning to make an offer.
UOB and Malayan Banking are also making considerations on bidding.
The Philippines unit is also valued at as much as $1 billion with BDO Unibank, Metropolitan Bank & Trust Co, Bank of the Philippine Islands and Union Bank of the Philippines all making considerations on extending an offer.
Valued at about $2 billion, Citi’s India consumer assets are expected to attract a bid from Kotak Mahindra Bank.
HDFC Bank and ICICI Bank are also weighing bids.
Questions & Answers
Q.Which specific Asian markets are included in the current round of binding bids for Citigroup’s retail assets?
Which specific Asian markets are included in the current round of binding bids for Citigroup’s retail assets?
Binding bids are due for retail assets in Indonesia, the Philippines, Taiwan, and Thailand this week, with offers for India expected next week. This forms part of Citi’s wider divestment strategy across 13 markets.
Q.What is the approximate valuation range for Citi’s retail assets in Taiwan, according to the report?
What is the approximate valuation range for Citi’s retail assets in Taiwan, according to the report?
Citi’s Taiwan retail assets could raise an estimated $2 billion to $4 billion. This valuation depends on which specific assets are ultimately included in the sale, as deliberations are ongoing.
Q.Which other global banks and local players are reportedly planning to bid for Citi’s various retail units?
Which other global banks and local players are reportedly planning to bid for Citi’s various retail units?
DBS and Standard Chartered are among global banks planning bids. Local players include Cathay Financial Holding Co, Fubon Financial Holding Co, Bangkok Bank, and BDO Unibank, among others across different markets.
Q.Has Citi already sold any of its retail assets as part of this ongoing plan to unload its holdings?
Has Citi already sold any of its retail assets as part of this ongoing plan to unload its holdings?
Yes, Citi has already sold its Australian unit to NAB in August as part of its broader strategy. This current round of bids covers other retail assets in Asia, Europe, the Middle East, and Africa.
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