Citigroup Inc. (NYSE: C) announced Sunday it has agreed to sell its majority stake in Japanese call center Bellesystem24. The move is just the latest in assets sales by the bank as it aims to raise capital and shore up its balance sheet following a government bailout that included $45 billion in loans.
The deal is with private equity firm Bain Capital Partners, who plans to purchase the stake for about $1.1 billion. Citigroup’s private investment unit, Citigroup Capital Partners Japan, is due to receive a $1 billion payment from Bain Capital.
Citigroup holds a 93.3 percent stake in Bellesystem24, which is the leading call center operator in Japan.
Citigroup was hard hit by the credit crisis and along with receiving government loans has roughly $300 billion in risky assets backed by government guarantee.
According to a Citigroup press release, the deal with Bain Capital is subject to regulatory review and customary conditions, and is anticipated to launch on or before November 20, 2009 and be settled on December 30, 2009
Citigroup will have reduced total assets will by $1.2 billion after the deal is complete. The transaction is not expected to have a material impact on Citigroup’s net income, the bank said in its statement.
Though Citigroup has been selling assets in Asian markets, it has expanded some businesses within the region. Last week, the bank announced it would offer unsecured personal loans in Beijing.
Citigroup launched a similar UPL program in Shanghai in May of 2008. The personal loan offering is aimed at Chinese citizens age 18-55 that work or reside in the Beijing.
Repayment periods for the loans range from six months to four years and hold a fixed interest rate.
