Citigroup takes $800m investment loss

Citi Building Sign

Citigroup is ending its investment in Akbank TAS at a loss of $800m on the value of its 2007 purchase.

Bloomberg News reports that the lender sold all of its remaining 9.9% holding in the bank for $1.15bn, it said in a statement on Thursday.

The bank negotiated an early exit from a three-year lockup agreement it signed with Akbank’s main owner, Sabanci Holding, when it sold an almost equivalent stake for the same amount in 2012.

The sale will have no material financial impact because the bank recorded a pretax impairment charge of about $1.2bn on the total investment in 2012, it said in a statement.

'The fact that Citi wanted to sell earlier than planned could be a bad indication for the markets', said Cagdas Dogan, at BGC Partners. 'It sort of implies that they expect them to keep on falling'.

To access the complete Bloomberg News article hit the link below:

Citigroup Lost $800 Million on Holding in Turkey’s Akbank

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