Citi announces exchange ratio for share exchange with Nikko Cordial Corporation
By Our Corporate Bureau | 19 Jan 2008
Citi today announced that Nikko Cordial Corporation shareholders will be entitled to receive 0.602 shares of Citi Inc common stock for each share of Nikko Cordial Corporation common stock. The share exchange becomes effective on January 29, 2008.
In April 2007, Citigroup acquired a majority 61 per cent stake in Japan's Nikko Cordial for $7.7 billion, making it the largest foreign takeover in Japan, where it is relatively weak. The US banking group is expected to align its retail banking operations with Nikko Cordial's brokerage business. (See: Citigroup acquires majority stake in Nikko Cordial for $7.7 billion)
In accordance with the share exchange agreement approved at the extraordinary general meeting of Nikko Cordial Corporation shareholders on 19 December 2007, the definitive exchange ratio was determined by reference to the average of the volume-weighted average prices per Citigroup Inc common share on the New York Stock Exchange on each of the three trading days ending on (and including) 17 January 2008, converted from US dollars into Japanese yen.
"Citi has been serving clients in Japan for more than a century. We look forward to the successful completion of the share exchange and to formally welcoming Nikko Cordial shareholders to our company," said Vikram Pandit, chief executive officer of Citi. "Nikko Cordial's premier franchise and brand and its strong and established client network will help us create Japan's leading comprehensive banking and securities group."
"This is a significant step toward realising the benefits from our comprehensive strategic alliance with Nikko Cordial," said Douglas Peterson, Chief Executive Officer of Citigroup Japan Holdings. "By leveraging the strengths of both Citi and Nikko in this important market, we aim to better serve our customers in Japan."
