- Citigroup announced Wednesday that it plans to pursue an initial public offering of its Mexico business, Panamax, which is a long-form wire spinoff.
- The bank expects to complete the demerger in the second half of 2024, with a possible public offering in 2025, it said.
Citigroup Inc. CEO Jane Fraser during an interview on “The David Rubenstein Show: Peer-to-Peer Conversations” at the Economic Club of Washington on Wednesday, March 22, 2023 in Washington, DC, US.
Valerie Plesch Bloomberg | Good pictures
Citigroup announced Wednesday that it plans to pursue an initial public offering of its Mexico business, Panamax, which is a long-form wire spinoff.
The bank expects to complete the demerger in the second half of 2024, with a possible public offering in 2025, it said. The company has yet to decide where to list, but a dual listing in Mexico and the U.S. could be possible, a source familiar with the plans told CNBC.
“After careful consideration, we concluded the optimal path to maximize Panamax’s value to our shareholders and advance our goal of simplifying our company was to shift away from our dual-track approach to focus solely on the IPO of the business,” said CEO Jane Fraser. A Press release.
Citigroup was exploring a possible sale of the business. Recent media reports this month suggested a deal valued at around $7 billion was nearing completion.
Citigroup bought Panamax in 2001 for $12.5 billion. The bank originally said it would exit the business in 2022, which operates about 1,300 branches with more than 12 million retail customers and about 10 million pension fund customers. It has approximately 38,000 employees.
The company also said on Wednesday that it will resume share buybacks this quarter. Shares of Citigroup fell nearly 2% in pre-market trading on Wednesday.
— CNBC Leslie Picker contributed to this report.
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