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Citigroup to raise about US$3b from Guangfa stake sale to China Life: source

[HONG KONG] Citigroup Inc will sell its minority stake in Chinese regional lender China Guangfa Bank (CGB) for about 19.7 billion yuan (S$4.2 billion), freeing up capital to expand other activities in the country, a source familiar with the sale said on Monday.

The bank bought the stake in 2006 for about US$610 million, translating into a profit of more than US$2 billion on the original investment, said the source, who declined to be named because details of the transaction were not public.

Citigroup said it agreed to sell its 20 per cent stake in CGB to China Life Insurance Company Ltd for an undisclosed sum, adding the deal would not be material to its earnings.