For Immediate Release Citigroup Inc. (NYSE: C)
Citi Announces Successful Completion of the Sale of Equity Stake in Banamex
HIGHLIGHTS
- Citi successfully completed of the sale of a ~25% equity stake in Banamex to a company wholly-owned by Fernando Chico Pardo and members of his immediate family
- Transaction advances Citi's strategic priority of divesting of Banamex and places it in the hands of one of Mexico’s most successful investors
- Citi continues its commitment to grow its institutional business in Mexico, investing in the platforms, talent, and relationships that will solidify its leadership position and deliver sustained growth for clients and shareholders
NEW YORK – Citi today announced the successful completion of the sale of a ~25% equity stake in Grupo Financiero Banamex, S.A. de C.V. (“Banamex”) to a company wholly-owned by Fernando Chico Pardo and members of his immediate family. As part of this agreement, effective immediately, Fernando Chico Pardo will become Chair of Grupo Financiero Banamex.
The transaction, which was announced in September, has received the necessary Mexican financial and antitrust regulators’ approval and has met all closing conditions.
Jane Fraser, Chair and CEO of Citi said, “The closing of this transaction advances our strategic priority of divesting of Banamex and places it in the hands of one of Mexico’s most successful investors. It also allows us to redouble our commitment to our institutional business in Mexico, investing in the platforms, talent, and relationships that will solidify our leadership position and deliver sustained growth for our clients and shareholders.”
Fernando Chico Pardo said, “The closing of this transaction begins my journey as Banamex's largest private individual shareholder. This project is more than just a financial commitment; it's deeply personal. I'm proud to lead this with my sons, ensuring Banamex remains a cornerstone of Mexico's future.”
As previously noted, any decisions related to the timing and structure of the proposed Banamex initial public offering (“IPO”) will continue to be guided by several factors, including market conditions and receipt of regulatory approvals.
About Citi
Citi is a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in its home market of the United States. Citi does business in more than 180 countries and jurisdictions, providing corporations, governments, investors, institutions and individuals with a broad range of financial products and services.
About Fernando Chico Pardo
Fernando Chico Pardo is a Mexican businessman who began his career on Wall Street and later founded Acciones y Asesoría Bursátil, a brokerage firm of which he was founding partner and CEO until 1992. That same year, the brokerage firm merged with Inbursa and Fernando Chico Pardo assumed the role of CEO of Inbursa Financial Group until 1997. In 1997 he founded Promecap, a leading private equity firm in Mexico that manages assets of USD $5 billion, of which he is President and CEO. He is a controlling shareholder in ASUR (airports), RLH Properties and Tortuga (hotels), and the largest individual shareholder of Carrix (port operations). He is Chairman of the Board of Directors of ASUR and a member of the Board of Directors of Carrix, as well as of that of several Mexican companies such as Grupo Carso, Grupo Industrial Saltillo and GEPP. Fernando Chico Pardo holds a degree in Business Administration from the Universidad Iberoamericana in Mexico City and an MBA from the Kellogg School of Management at Northwestern University. He is a philanthropist and active leader in various non-profit organizations dedicated to health, education, journalism, environment, arts and culture.
Media Contact
Danielle Romero-Apsilos danielle.romeroapsilos@citi.com
Investors Contact
Jennifer Landis investorrelations@citi.com
Certain statements in this press release are “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. These statements are not guarantees of future results or occurrences. Actual results and capital and other financial conditions may differ materially from those included in these statements due to a variety of factors. These factors include, among others, (i) macroeconomic and local market conditions, including those related to the banking sector; (ii) the significant complexities, execution challenges and uncertainties involving the divestiture of Banamex; (iii) political, legislative, regulatory, or tax uncertainties in Mexico; and (iv) the precautionary statements included in this release. These factors also consist of those contained in Citi’s filings with the U.S. Securities and Exchange Commission, including, without limitation, the “Risk Factors” section of Citi’s 2024 Form 10-K. Any forward-looking statements made by or on behalf of Citi speak only as to the date they are made, and Citi does not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward-looking statements were made.
This communication shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. Any offers, solicitations or offers to buy or any sales of securities in the United States will be made in accordance with the registration requirements of the U.S. Securities Act of 1933.
The inclusion of forward-looking statements should not be regarded as a representation that any transaction shall be consummated, including the proposed IPO of Banamex, or that Citi will achieve its plans, estimates and expectations with respect to such transaction. Investors are cautioned not to place undue reliance on these forward-looking statements.