Citigroup To Sell Primerica Stock as Bank Exits Insurance Unit
Citigroup Inc. (C), the lender shedding assets after repaying a U.S. government bailout, may sell about half its remaining stake in Primerica Inc. (PRI), the insurer partly sold in a public offering in March 2010.
The planned sale of 12 million shares would generate about $288 million based on the $24.03 closing price on the New York Stock Exchange yesterday. After the sale, New York-based Citigroup will hold between 20.6 percent and 23.1 percent of Primerica’s common stock, according to a regulatory filing today from Duluth, Georgia-based Primerica. 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 is selling assets as part of a plan to streamline the bank after accepting a $45 billion bailout in 2008. Primerica was part of Citi Holdings, the portfolio of businesses Pandit said he would sell, wind down or restructure.
Primerica, which sells term life insurance and mutual funds, sold 21.36 million shares at $15 each as part of its initial public offering in March 2010.
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