NEW YORK CITY (dpa-AFX) - Citigroup Inc. (C) said Friday that it has sold 404 million common shares in Akbank T.A.S. through an equity offering representing 10.1 percent of the equity interest in the company for TRY5.24 per share.
Total proceeds from the transaction are expected to be around $1.15 billion resulting in an after-tax loss of around $243 million in the second quarter.
The transaction is estimated to generate around 23 basis points of Tier 1 Common capital under Basel III.
On April 30, Citi entered into an agreement with H.Ö. Sabanc Holding A.S. and Akbank under which Citi committed to hold the balance of its strategic stake in Akbank, which was around 9.9 percent of Akbank common shares, for a three year lock-up period. Sabanc Holding agreed to waive its right of first offer in relation to the sale of Citi's 10.1 percent stake.
Sabanc Holding and Citigroup have expressed their intention to continue their ongoing partnership and strategic cooperation. Accordingly, one non-executive member of the board of directors of each of Akbank and Citibank A.S., Citi's local franchise in Turkey, will continue to be elected from among candidates mutually agreed and nominated by Sabanc Holding and Citigroup.
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