Citigroup Inc., the third-biggest U.S. bank, may raise as much as $273 million selling a stake in insurer Primerica Inc.
Citigroup is offering 12 million shares at $22.75 apiece, Primerica said today in a statement distributed by Business Wire. Underwriters have the option of purchasing an additional 1.8 million Primerica shares from the New York-based bank.
The bank will still hold a stake of 20.7 percent to 23.1 percent after the sale, Primerica said. Citigroup was the largest shareholder as of December, with a 40 percent stake, according to data compiled by Bloomberg.
Citigroup Chief Executive Officer Vikram Pandit, 54, is selling assets and streamlining the bank after repaying a $45 billion U.S. government bailout. Primerica was part of Citi Holdings, the portfolio of businesses Pandit said he would sell, wind down or restructure.
Primerica, based in Duluth, Georgia, sells term life insurance and mutual funds. It sold 21.36 million shares at $15 each as part of its initial public offering in March 2010. Primerica rose 1 cent to $23.42 today in New York Stock Exchange trading, and has declined 3.4 percent this year.