Citigroup Acquires Controlling Share In Nikko Cordial

Citigroup has increased its share in Japanese brokerage Nikko Cordial to a controlling stake of 68.23 percent, according to the Japanese finance ministry. Previously, the US bank had held a 61.08 percent share in Japan's third largest brokerage. The increased

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Citigroup has increased its share in Japanese brokerage Nikko Cordial to a controlling stake of 68.23 percent, according to the Japanese finance ministry.

Previously, the US bank had held a 61.08 percent share in Japan’s third-largest brokerage.

The increased shareholding will mean that with over two-thirds of voting rights Citigroup will be able to bypass opposition in the boardroom and embark upon a restructuring programme.

Under the terms of the deal, Citigroup acquired 37 million shares in Nikko via a private placement for which it paid $13.9 each.

Meanwhile, a further 32 million shares were acquired between 5th and 6th June for less than $13.9 per share, according to a spokesman.

Citigroup initially had sought to build up a controlling share in March but had faced opposition from a number of shareholders who perceived that the US bank’s offer price undervalued the brokerage.

In December of last year, six top-ranking Nikko executives resigned following an investigation into illegal accounting procedures.

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