Struggling Citigroup Inc plans to sell NikkoCiti Trust and Banking Corp, its trust bank unit in Japan, as part of its global restructuring efforts in a deal that could raise up to 40 billion yen ($420 million), Japanese media reported on Sunday. An auction could be held as early as Monday, the Nikkei business daily said, without citing any sources.
Major Japanese trust banks such as Mitsubishi UFJ Trust and Banking Corp, a subsidiary of Mitsubishi UFJ Financial Group, Sumitomo Trust & Banking Co Ltd, and Mizuho Trust & Banking Co Ltd, are likely to make bids for the Citigroup unit, Nikkei said. Kyodo news agency and several other Japanese dailies carried similar reports.
Yomiuri Shimbun said the sale could be worth 10 billion yen to 20 billion yen, while Nikkei said it may go for around 40 billion yen. NikkoCiti Trust had 136 employees and 20 billion yen in capital as of September 30, according to its website. Company officials were not immediately available for comment.
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