As part of the transaction, the company sold 396 million common shares in Akbank for TRY7.45 per share.
Sabanci and Citigroup have been involved in a mutual partnership since 2007.
In May 2012, Citigroup announced the sale of 404 million common shares in Akbank through an equity offering representing 10.1% of the equity interest in the company for TRY5.24 per share for about $1.15bn.
The deal resulted in an after-tax loss of about $243m in the second quarter.
Citi signed agreement with Sabanci and Akbank In April 2012, under which it proposed to hold the balance of its strategic stake in Akbank, about 9.9% of Akbank common shares, for a three-year lock-up period.
Following the sale, which is subject to limited exceptions, Sabanci agreed to waive its right of first offer in relation to the sale of Citi’s 10.1% interest.
Citigroup, which has its presence in Turkey for 40 years, aims to grow its franchise in the country.
The global bank has about 200 million customer accounts and performs business in more than 160 countries and jurisdictions. It provides consumers, corporations, governments and institutions with a range of financial products and services.
Image: Citigroup EMEA headquarters, Canary Wharf, London. Photo: courtesy of Arpingstone
