Ontario Teachers’ Among Bidders for CitiFinancial Canada: Globeby
The Ontario Teachers’ Pension Plan and several North American private-equity firms are among bidders to Citigroup Inc.’s subprime-lending business in Canada, according to the Globe and Mail.
A sale of CitiFinancial Canada, a 200-branch unit that provides loans to consumers with poor credit ratings, could fetch more than C$400 million ($306.2 million), the newspaper reported Sunday, without saying how it learned about the bidders. That valuation is based on Citigroup’s $4.25 billion sale last year of its 1,100-branch U.S. subprime lender, OneMain Financial.
Citigroup, which gets more revenue outside its home market than any of its U.S. peers, is also in the process of selling retail-banking and credit-card operations in Latin America. Citi Holdings, the portfolio of unwanted assets tagged for sale, has become such a diminished part of the bank’s results that New York-based Citigroup will stop separately breaking them out this year.
Deborah Allan, a spokeswoman for Ontario Teachers’, and Citigroup’s Troy Underhill declined to comment on the Globe and Mail report.