Citigroup-Led Consortium Sign a Strategic Investment and Cooperation Agreement with GDB.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Citigroup today confirmed that a Citigroup led consortium has reached an agreement to acquire an 85.6% stake in Guangdong Development Bank Guangdong Development Bank (Simplified Chinese: 广东发展银行; Traditional Chinese: 廣東發展銀行 ("GDB (programming, tool) GDB - GNU debugger. The FSF's source-level debugger for C, C++ and other languages. Developed by many people but most recently Fred Fish <fnf@cygnus.com>, Stu Grossman <grossman@cygnus.com> and John Gilmore <gnu@cygnus. ") for 24.267 billion yuan/US$3.06 billion. At closing, Citigroup will own a 20% stake in GDB, as will China Life and State Grid. CITIC CITIC China International Trust and Investment Corporation Trust will hold a 12.85% stake, Puhua will hold an 8% stake and IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) will hold an approximate 4.74% stake. This transaction represents the first time a major international financial services company, leading a consortium of co-investors, has been permitted to obtain substantial ownership and assume a significant management role in a Chinese financial institution. The transaction also complements Citigroup's current operations and other investments in this market and contributes to the long-term success of China's banking sector. Mr. William Rhodes, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Citibank, N.A., Senior Vice Chairman, Citigroup said, "The continued emergence of China's economy represents a tremendous opportunity for Citigroup, and we look forward to working with GDB to build its operations and enhance the products and services it offers to customers." Mr. Robert Morse, CEO of Corporate & Investment Banking Asia Pacific, said, "We are delighted to have been selected as the leader of the consortium, with our outstanding co-investors, to invest in Guangdong Development Bank to support GDB's transformation and help it to achieve its future potential. We believe this investment is a positive outcome for all stakeholders involved, including the Guangdong Government, GDB's management, employees, customers, shareholders and the new investors. It is an important milestone in our efforts to contribute to the long-term success of China's economy and its banking sector. " The agreement allows Citigroup to work with GDB on a daily basis to enhance its management team and corporate governance Corporate Governance The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law. standards, instill operational and lending best practices, improve risk management and internal controls, upgrade the Bank's information technology infrastructure, and further develop its customer service and product offerings. GDB is a national bank with a large branch presence in China - an important growth market for Citigroup. It has one of the largest branch networks amongst China's joint stock banks JOINT STOCK BANKS. In England they are a species of quasi corporations, or companies regulated by deeds of settlement; and, in this respect, the stand in the same situation as other unincorporated bodies. with 27 branches nationwide and 502 outlets. It has assets of USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 47.9 billion with 12 million consumer customers, 9 million cardholders, 16,000 SME (1) (Small and Medium-sized Enterprise) See SMB. (2) (Subject Matter Expert) An individual who is well-versed in the policies and procedures of a particular department or division. customers and 12,474 employees. Citigroup is honored to be working with some of the most prominent and well-respected companies in China who will help support GDB in its future direction and growth. State Grid, one of the Chinese co-investors, is a state owned backbone enterprise with the construction and operation of the national power grid as its core business. In addition, Citigroup asked IBM to become a partner in this investment. Citigroup and IBM will look for ways to cooperate as Guangdong Development Bank transforms its operations and moves forward towards becoming a best-in-class banking platform. IBM has brought business value and technology expertise to clients in China and other developing countries to help them strengthen their infrastructure, and sees Guangdong Development Bank as a similar opportunity. Citigroup Corporate and Investment Banking is the exclusive financial advisor to Citigroup for this transaction. About Citigroup: Citigroup (NYSE NYSE See: New York Stock Exchange : C), the leading global financial services company, has some 200 million customer accounts and does business in more than 100 countries, providing consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. Major brand names under Citigroup's trademark red umbrella include Citibank, CitiFinancial, Primerica, Smith Barney and Banamex. Additional information may be found at www.citigroup.com Certain statements in this document are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and . These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a variety of factors. More information about these factors is contained in Citigroup's filings with the Securities and Exchange Commission. |
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