agreed to sell its remaining 20% stake in Samba Financial Group to a Saudi pension fund for an undisclosed amount.
Samba, which used to be called Saudi American Bank, has been as much as 40%-owned by Citigroup since being set up as a joint venture in 1980. The U.S. financial services giant unloaded a 10% stake in the company in December 1991 to bolster its then-flagging capital ratios, then saw its stake cut to just above 20% five years ago when Samba merged with another Saudi institution.
Citigroup will record an after tax-gain from the divestiture of about $760 million, or 15 cents a share, in the second quarter. The stock was up 20 cents, or 0.4%, to $46.54 in early trading.