Citi nears completion of its public exchange



The completion of the public exchange offer would take the US government closer to owning 34 per cent in the financial services entity.

“Approximately US$20.3 billion in aggregate liquidation value of publicly held convertible and non-convertible preferred and trust preferred securities were validly tendered and not withdrawn in the exchange.

Liquidation value

“This represents 99 per cent of the total liquidation value of securities that Citi was offering to exchange,” Citi said.

Citi would offer nearly 5.8 billion common shares to the participants of the public exchange offer.

One of the worst hit in the financial turmoil, Citi has already fresh capital to the tune of US$ 45 billion from the US and the exchange offer is part of its measures to strengthen the bank’s capital position.

Last week, the company announced the completion of exchange offers worth US$ 25 billion with the Federal government and certain private holders of preferred securities.

With the US government ready to match up to US$ 12.5 billion of the total securities exchanged in the offer, Citi said it expects to complete another exchange of preferred securities worth US$ 12.5 billion with the US.

Liked the story?

  • 0

    Happy
  • 0

    Amused
  • 0

    Sad
  • 0

    Frustrated
  • 0

    Angry