Citigroup (NYSE: C) announced on Friday that it would raise about $300 million from the sale of its indirect ownership share of the second largest Chilean pension fund administrator as part of the company’s ongoing efforts to slim-down and focus on its core businesses.
Citi and Sociedad de Inversiones y Servicios la Construccion S.A. (Invesco) are equal owners in Inversiones Provisionales S.A., which owns an 80% stake in the pension-fund administrator Administradora de Fondos de Pensiones Habitat S.A.
Citigroup plans to sell its indirect interest in Administradora de Fondos de Pensiones Habitat which will likely be finalized during the month of May. The deal is expected to bring in a $300 million dividend to be paid by A.F.P. Habitat.
In a statement, Citigroup said that the one-time revenue would not have a material impact on its long-term earnings.
Citigroup CEO Vikram Pandit said last year that the bank would eventually sell about $900 billion worth of assets as part of an attempt to slim down its scattered operations. Citi has currently sold about $350 million assets including its Japanese brokerage Nikko Cordial Securities and its Diners Club North America credit card business.
