Citi Selling Chile AFP Stake

Citi has reached agreement with Invesco and Inpresa to sell its 40.23% indirect ownership in AFP Habitat for approximately $300m. Citi and Invesco have an equal part ownership in Inpresa, which owns 80.46% of Habitat. According to Citi, Habitat is the second largest pension fund administrator in Chile, with $29bn assets under management and 24% market share in terms of covered persons. Citi’s indirect interest in Habitat will be sold via public tender offer to be conducted by an affiliate of Invesco for all outstanding shares of Habitat. The tender is expected to launch and close by mid-May, subject to approval from the Superintendencia de Pensiones and the payment of an extraordinary dividend by Habitat. Citi says the deal is consistent with its strategy of focusing on core businesses. “Citi remains committed to the Chilean market,” says Fernando Concha, CEO for Citi’s South America cluster. Citi has a partnership with Banco de Chile. The transaction is not expected to have a material impact on Citi’s net income.