Reverse stock split is expected to reduce the number of outstanding shares of Citigroup common stock from approximately 29 billion to approximately 2.9 billion.
With this reverse stock split, every 10 shares of issued and outstanding Citigroup common stock will be automatically combined into one issued and outstanding share of common stock without any change in the par value per share.
Citigroup said no fractional shares will be issued in connection with the reverse stock split.
Following the completion of the reverse stock split, Citi’s transfer agent will aggregate all fractional shares.
Citi said the reverse stock split will be effective after the close of trading on 6 May 2011, and that Citi common stock will begin trading on a split adjusted basis on the NYSE on 9 May 2011.
Citi strategy is to focus on its core businesses in Citicorp to support economic growth including banking, providing loans to small businesses, making markets and providing capital, while continuing to wind down Citi Holdings in an economically rational manner.
At the end of 2010, the US Treasury sold its remaining shares of common stock, earning in total a $12bn profit for taxpayers on its investment in Citi.
Since 2006, 2010 was Citi’s first year of four profitable quarters with $10.6bn of net income.
