The sale follows an agreement with HO Sabanci Holding and Akbank under which Citi committed to hold the balance of its strategic stake in Akbank, approximately 9.9% of Akbank common shares, for a three year lock-up period.
As per the agreement, Sabanci had waived its right of first offer in relation to the sale of Citi’s 10.1% stake, subject to limited exceptions.
Sabanci and Citigroup will remain committed to continue their ongoing partnership and strategic cooperation, said the firms.
As an indication of the parties’ commitment, one non-executive member of the board of directors of each of Akbank and Citi’s local franchise in Turkey will continue to be elected from among candidates mutually agreed and nominated by Sabanci Holding and Citigroup.
According to an estimate, the transaction will produce about 23 basis points of Tier 1 Common capital under Basel III.
Citi has almost 200 million customer accounts and does business in more than 160 geographies.
