UOB announced on 14 January 2022 that it will acquire Citigroup’s consumer banking businesses in Indonesia, Malaysia, Thailand, and Vietnam.
The total cash consideration for this transaction will be determined by adding an aggregate premium of S$915 million to the net asset value of Citigroup’s Consumer Business at completion. Given that this segment’s combined net asset worth as of 30 June 2021 was S$4 billion, this deal would be approximately S$4.915 billion and would be funded by UOB’s excess capital.
So, is this a good deal for UOB? And would it add value for its shareholders?
If you are a UOB shareholder or plan to become one, here are some key things to note:
5 things for shareholders should note
1) Acceleration of UOB Retail Banking Business Across ASEAN
Prior to this acquisition, UOB already had operations in all four Southeast Asian markets that it intends to purchase from Citi.