Citi Sells Colombia Pension Unit

Citi has reached agreement with a consortium led by Grupo Colpatria, whose members also include Palmfund Management and Linzor Capital Partners, to sell its ownership in pension fund administrator Citi Colfondos. “This transaction is another example of the progress Citi is making to focus on our core historical strengths, while reducing assets, tightly managing risks and optimizing value for our shareholders,” says Francisco Aristeguieta, Citi CEO for Colombia and the Andean Region. Founded in 1991, Citi Colfondos is the fourth largest fund administrator in the country. As of August 2009, it had $5.6bn in assets under management and 2.1m customers. “Citi has proudly served clients in Colombia since 1929, and we remain committed to this very important market,” adds Aristeguieta. The transaction is expected to close in Q4, subject to approval of the Superintendencia Financiera. It is not expected to have a material impact on Citi’s net income. Citi does not state the price.