Citigroup on Thursday announced that it had reached an agreement to sell its 20 percent stake in Samba Financial Group, formerly known as the Saudi American Bank, to the Public Investment Fund, a Saudi public entity. In an official statement Citigroup said it would record an after tax gain on this sale of some $760 million, or 15 cents per share, in the second quarter of 2004.
By this move, the world's largest financial services group is in fact ending its direct presence in Saudi Arabia after nearly 50 years. A Citigroup spokeswoman denied this latest step reflected any political or security concerns regarding Saudi Arabia and added it was looking at "other opportunities in the region," the FT reported.
Citibank has been managing Samba under a technical management agreement, which was last renewed in 1999 for a five-year term. In September 2003, an agreement was concluded with Citigroup to complete the transfer of Samba to local management by Oct. 31, 2003.
Samba announced record results with net income of SR581 million during the first quarter, an increase of 21 percent over the same period last year. (menareport.com)
© 2004 Mena Report (www.menareport.com)
