Citigroup to Pay $520 Million to Increase Share in Chilean Bank (NYSE: C)

Citigroup Inc (NYSE: C) announced that it will pay $520 million (269.7 billion Chilean pesos) to increase its stake in Banco de Chile SA, which will make Citigroup the controlling shareholder of the Chilean bank, according to a new regulatory filing made on Monday with Chile’s securities regulator.

Citi acquired an additional 8.52% share in LQ Inversiones Financieras SA, exercising its option to reach a controlling 50% stake in the holding company. The U.S. based bank will be acquiring 57 million shares of the company and the transaction will be finalized on May 3^rd.

Banco De Chile is the country’s second largest bank and is a subsidiary of LQ Inversiones Fiancieras.

Citigroup took on a 10.44% ownership stake in Banco de Chile, through buying shares of LQ Inversiones Fiancieras. As part of the move, the Chilean bank took over Citibank’s local assets.

Under the terms of the original deal, Banco De Chile took over all of Citibank’s local clientele while Citi retained control over all of Banco De Chile’s operations in the United States.

Banco De Chile is controlled by the local Luksic family, which also owns U.K. listed copper miner Antofagasta PLC and U.S.-listed beverage company Compania Cervecerias Unidas SA and other assets.