Apollo Said to Be Among Bidders for Citi’s OneMain Unit

Apollo Global Management is among bidders for Citigroup Inc.’s consumer lender OneMain Financial Holdings, as the auction progresses to the second round, people with knowledge of the matter said.

Citigroup has opened OneMain’s books to bidders including Springleaf Holdings Inc., with offers due in early February, said the people, who asked not to be identified because the matter isn’t public. The lender is seeking at least $4 billion for OneMain, people familiar with the situation have said.

The bank has also filed for an initial public offering of OneMain, pursuing what’s called a dual-track process as it seeks to offload the subprime lender that no longer fits its business model.

Lone Star Funds, the Dallas-based private equity firm run by John Grayken, made an initial offer for OneMain, people familiar with the matter said last month.

Spokesman for Apollo and Springleaf and Citigroup declined to comment. A representative for Lone Star didn’t immediately reply to a request for comment.

OneMain earned $415 million in the first nine months of 2014, up 7 percent from a year earlier, according to its IPO filing with the Securities and Exchange Commission. Springleaf earned about $552 million during the same period, it reported in November.

OneMain and Springleaf are two of the biggest U.S. providers of installment loans, a type of high-interest credit paid back in chunks over time. OneMain, of Baltimore, has more than 1,100 branches while Evansville, Indiana-based Springleaf has close to 830, according to their websites.

Springleaf, controlled by Fortress Investment Group, went public in 2013 and has a market value of about $4 billion after its shares rose 43 percent last year. The shares rose half a percent to $34.48 as of 2:30 p.m. in New York trading today.

Apollo plans to expand its assets primarily through its credit business, Chief Executive Officer Leon Black said at the company’s investor day in December.

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