Singapore/New Delhi: Government of Singapore
Investment Corp (GIC) today said it has reduced its stake in
global financial services major Citigroup to below five per
cent through open market sales.
GIC, the Singapore Government's investment management
company, had nine per cent stake in Citigroup earlier.
"This was the level GIC had intended when it invested in
Citigroup through the convertible security. A stake below five
per cent reflects GIC's goals and desire to be a portfolio
investor," the statement said.
On September 11, GIC had exchanged its USD 6.88 billion
holdings of convertible preferred stock of Citigroup into
common stock.
The conversion price had been USD 3.25 per share, this
exchange had resulted in GIC having a shareholding stake
exceeding nine per cent in Citigroup.
Following the conversion, GIC has now reduced this stake
in Citigroup to below five per cent through open market sales.
However "GIC will continue its investment in Citigroup as
we are confident of its long-term prospects," the statement
added.
Bureau Report
First Published: Tuesday, September 22, 2009, 18:32