UOB to acquire Citigroup’s consumer banking business in Malaysia, Indonesia, Thailand, Vietnam for RM2.8b | Malay Mail

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KUALA LUMPUR, Jan 14 — United Overseas Bank Ltd (UOB)’s subsidiaries will acquire Citigroup’s consumer banking businesses, comprising its unsecured and secured lending portfolios, wealth management and retail deposit businesses in Indonesia, Malaysia, Thailand and Vietnam for S$915...

KUALA LUMPUR, Jan 14 — United Overseas Bank Ltd ’s subsidiaries will acquire Citigroup’s consumer banking businesses, comprising its unsecured and secured lending portfolios, wealth management and retail deposit businesses in Indonesia, Malaysia, Thailand and Vietnam for S$915 million .

He added that the exercise is expected to be completed between mid-2022 and early 2024, depending on the progress and outcome of the regulatory approval process. “The acquired business — together with UOB’s regional consumer franchise — will form a powerful combination that will scale up UOB Group’s business and advance our position as a leading regional bank,” he said.

Citigroup’s Consumer Business had an aggregate net asset value of approximately SG$4.0 billion and a customer base of about 2.4 million as of June 30, 2021, and generated an income of approximately S$0.5 billion in the first half of 2021. The proposed acquisition is expected to be financed through excess capital and estimated to reduce UOB’s common equity tier 1 ratio by 70 basis points to 12.8 per cent, based on its capital position as at Sept 30, 2021.

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Its not RM2.8bil, thats the premium over the net asset value. Total cost is RM15bil. Get your headlines right.

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