TAIPEI – Citi today announced it has reached agreement with DBS on the acquisition of Citi’s consumer banking franchises in Taiwan. The transaction includes the retail banking, credit card, mortgage and unsecured lending businesses but excludes the bank’s institutional businesses. Citi remains committed and focused on serving institutional clients in Taiwan locally, regionally and globally.
The agreement covers all related Citi staff, with approximately 3500 consumer bank and supporting employees expected to transfer to DBS Taiwan upon close of the proposed transaction. DBS will pay Citi cash consideration for the net assets of the acquired businesses, plus a premium of approximately NTD 19.8 billion (US$715m), subject to customary closing adjustments.
Upon closing, Citi expects the transaction to result in the release of approximately US$800m of allocated tangible common equity. As previously announced, Citi’s exit from its consumer franchises in 13 markets across Asia Pacific and EMEA is expected to release approximately US$7 billion of allocated tangible common equity over time.
Peter Babej, Citi Asia Pacific CEO, said, “We are very pleased to announce this transaction with DBS, a leading organization with a strong consumer growth strategy in Taiwan which we are confident will provide our customers and employees with excellent opportunities. For Citi, this transaction will enable additional investment in our strategic focus areas, including our institutional businesses in Taiwan, which remains a priority market for our firm.”
DBS Taiwan was selected by Citi following an extensive and competitive auction process. Citi is committed to a seamless transaction, and during the transition to closing, there will be no change in service provided to our consumer banking and wealth customers. Completion of the proposed transaction is subject to customary regulatory and migration conditions.
Subject to the timing of satisfying these conditions, completion and full migration is anticipated by mid-2023.
Citi’s Banking, Capital Markets and Advisory Group is acting as exclusive financial advisor to Citi in respect of the transaction.
Certain statements in this release are “forward-looking statements” within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission (SEC). These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. These statements are not guarantees of future results or occurrences. Actual results and capital and other financial condition may differ materially from those included in these statements due to a variety of factors. These factors include, among others, the successful wind down and closure of the Taiwan consumer banking
business, including within the expected timeframe, macroeconomic and local market conditions, consumer preferences, and the precautionary statements included in this release. These factors also consist of those contained in Citi’s filings with the SEC, including without limitation the “Risk Factors” section of Citi’s 2020 Form 10-K. Any forward-looking statements made by or on behalf of Citi speak only as to the date they are made, and Citi does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.