Fri, Mar. 11, 5:54 PM
- SS&C (NASDAQ:SSNC) has wrapped an acquisition of Citigroup's (C +3.9%) Alternative Investor Services Business, which performs fund administration for hedge funds and private equity.
- Citi receives $321M from SS&C in the deal, which creates the industry's No. 2 alternative fund administrator.
- SS&C will take on more than 1,400 staff, 265 customers and about $395B in assets under administration. Current leaders will stay on and operate as a business unit in SS&C GlobeOp.
- A conference call to discuss the deal is set for Monday at 9 a.m. ET.
Nov. 13, 2015, 12:05 PM
- Under terms of the deal between Springleaf (LEAF +11.6%), the DOJ, and seven state AGs, Springleaf will sell 127 branches in 11 states. These branches represent 6% of the company's total, and $608M, or 4% of the company's receivables (pro forma as of Dec. 31, 2014).
- The buyer is Lendmark Financial Services, and the deal is expected to close on or around April 1.
- After combining with OneMain, Springleaf expects 2017 core net income of $830M-$900M, or $6.20-$6.70 per share.
- A conference call is just getting underway.
Aug. 6, 2015, 12:36 PM
- Springleaf (LEAF -9.1%) has agreed not to close the OneMain purchase from Citigroup (C -1.1%) prior to Sept. 10 in order to give the DOJ time to complete its review of the deal. Both Justice and certain state AG's have expressed antitrust concerns.
- Turning to operations, Q2 core earnings of $67M or $0.53 per share vs. $59M and $0.52 one year ago.
- Consumer net finance receivables of $4.3B up 27% Y/Y, up 10% Q/Q; per branch of $5.2M up 27% Y/Y.
- Yield for consumer segment of 26.5% down 53 bps from a year ago. Risk-adjusted yield of 21.64% down 27 bps.
- $1.2B of total consumer loans originated in Q2 includes $274M of direct auto originations.
- Previously: Springleaf Holdings beats by $0.02, misses on revenue (Aug. 6)
Mar. 31, 2015, 6:54 AM
- Citigroup (NYSE:C) has agreed to sell its Japanese credit card unit to Sumitomo Mitsui Trust Bank (OTCPK:SUTNY), as it trims its global operations to bolster profitability.
- The price of Citi Cards Japan was not disclosed, but local media reported the deal valued at around ¥40B ($335M).
- In December, Citigroup announced it was selling its Japanese retail banking operations to SMFG unit Sumitomo Mitsui Banking Corp.
Mar. 3, 2015, 7:15 AM
- In a deal that's been talked about since Sandy Weill ran Citigroup (NYSE:C), Springleaf Financial (NYSE:LEAF) has agreed to purchase Citi's OneMain Financial for $4.25B in cash. The transaction is expected to close in Q3.
- Citi's consumer finance unit, OneMain has been reported under the Citi Holdings unit, of which the bank has feverishly trying to work its way down to as close to zero dollars in assets as possible. In a presentation yesterday, the bank noted assets at Citi Holdings have fallen to just 5% of total bank assets from 32% in 2008.
- Citi will use the sale proceeds to pay down Citi Holdings debt, and the bank expects to see earnings boosted by about $1B thanks to the deal.
- For Fortress Investment (NYSE:FIG)-backed Springleaf (Fortress purchased LEAF from AIG in 2010), it gets a natural fit in a complimentary consumer finance business
- C +1% premarket. LEAF no action.
- See also: Springleaf see big things with OneMain purchase (March 3)
Feb. 20, 2015, 2:32 PM
- The price sounds right as the $4B level has been thrown around as a possible sales amount for months, with Springleaf Holdings (LEAF +7.5%) at the top of the list of possible bidders.
- OneMain Financial is Citigroup's (C +1.2%) consumer/subprime lending business, and Springleaf's natural fit perhaps allowed it to pay more than P-E firms who might otherwise have been buyers.
- Previously: OneMain sale could create a windfall for Citi owners (Jan. 21)
Dec. 25, 2014, 3:14 AM
- Sumitomo Mitsui (NYSE:SMFG) has announced that it will buy Citigroup's (NYSE:C) Japanese retail banking operations to expand services for wealthy individuals in the country.
- The deal, which includes ¥2.4T ($20B) in deposits, 740K customers and 32 branches, is expected to close in October.
- Previously: Timeline disclosed for SMBC, Citi deal (Dec. 24 2014)
Dec. 24, 2014, 2:30 AM
- Sumitomo Mitsui (NYSE:SMFG) will buy Citigroup's (NYSE:C) Japanese retail banking operations in October for about ¥40B ($332M), Reuters reports, outlining a date for the long-awaited sale. Sumitomo Mitsui will announce the deal tomorrow.
- Citi is looking to exit 11 consumer-banking markets with poor returns, including Japan, as it looks to focus on corporate and investment banking, markets and transaction services.
Oct. 2, 2014, 12:00 PM
- Springleaf Financial (LEAF -1.4%) has held discussions with bankers about financing a potential purchase of OneMain Financial, Citigroup's (C -0.7%) subprime consumer lender, reports the WSJ.
- Perhaps trying to move things along, Citi two weeks ago let leak it was prepping to imminently file for an IPO of the unit. The Journal's sources say Springleaf's financing talks are at an early stage, and will probably speed up once those IPO papers are filed.
- Citi has been trying to unload Springleaf for some time, but some investors - with subprime maybe about to make a comeback - wonder whether what seemed like a smart move one or two years ago is such a bright idea today. In a strict numbers sense, it may not be, but there's D.C. to think about, and Citi has enough regulatory issues on its plate without adding a subprime business to them.
- Previously: Citi reportedly to file for OneMain Financial IPO this month
Sep. 12, 2014, 6:43 AM
- As banks weigh in their bids for Citigroup's (NYSE:C) Japanese retail banking operations, the U.S. bank announced that it was looking to sell its Japanese Diners Club card business along with the unit.
- Citigroup's Japanese retail business has some 3.6T yen ($33.6B) in deposits, of which almost 2T yen is dollar-denominated, attracting Japanese banks seeking foreign currencies.
- Ten banks, including Mitsubishi UFJ Financial (NYSE:MTU), Mizuho Financial (NYSE:MFG), Sumitomo Mitsui Financial (NYSE:SMFG), Resona (OTCPK:RSNHF), Sumitomo Mitsui Trust (OTCPK:SUTNY) and Shinsei Bank (OTCPK:SKLKY) have all submitted preliminary bids.
Jan. 15, 2014, 7:08 PM
- Citigroup (C) is selling mortgage servicing rights (MSRs) for 64K Fannie Mae residential first mortgage loans that carry unpaid principal balances of $10.3B between them. (PR)
- Citi notes the sale "the majority of the delinquent loans serviced by CitiMortgage for Fannie Mae," and accounts for "nearly 20% of the total loans serviced by CitiMortgage that are 60 days or more past due." The transfer of servicing rights will start in Q1 and continue into Q3.
Dec. 16, 2013, 6:18 PM
- Citigroup (C -0.1%) sells its Metalmark Capital P-E unit to comply with the Volcker Rule, Bloomberg reports. Terms were undisclosed, but Citi had been trying to sell the fund, which oversees $2.5B in assets, along with $6B in other P-E and hedge fund assets.
- Metalmark will no longer be an affiliate of Citigroup and will continue to be managed by the same investment team. As part of the deal, Citigroup will keep its L-P interests in Metalmark Capital Partners II.
Sep. 3, 2013, 3:28 AM
- Citigroup (C) has reportedly sold more than $6B in private-equity and hedge-fund assets over the past month as it seeks to comply with prospective Volcker rule requirements.
- Citigroup has divested a $4.3B private-equity fund called Citi Venture Capital International to Rohatyn Group for an undisclosed amount, and a $1.9B emerging-markets hedge fund to the vehicle's managers. Citigroup is trying to sell a $2.5B North American private-equity-fund, Metalmark Capital, also to the management.
- Volcker is expected to cap the amount of money banks can inject into alternative investments such as private-equity and hedge funds to 3% of their tier-one capital, and prevent banks from investing in funds they don't manage.
Aug. 27, 2013, 4:51 AM
- Bill Ackman's Pershing Square sold his 39.1M shares in J.C. Penney (JCP) to Citigroup (C), which is now offering them to the market at $12.90 each.
- The price is well below yesterday's close of $13.35 and is just over the half the amount of about $25 a share that Ackman's Pershing Square paid for the 18% holding in 2010 and 2011. The trades have cost the hedge fund hundreds of millions of dollars.
- It's unclear whether another activist investor, Vornado's Steven Roth, intends remain on the board or sell his firm's remaining stock in J.C. Penney.
Aug. 25, 2013, 2:45 AM
- BATS Global Markets (BATS) is reportedly in advanced negotiations to merge with Direct Edge Holdings in an all-stock deal that would create the second-largest exchange operator in the U.S. in terms of shares traded, putting it behind the NYSE (NYX) but ahead of Nasdaq (NDAQ).
- BATS CEO Joseph Ratterman is expected to become the head of the new firm, while Direct Edge boss William O'Brien would become president. The companies plan to continue operating all four of their U.S. stock-exchange platforms after the merger.
- Both firms are profitable, with BATS earning EBITDA of $101M in 2012.
- Direct Edge's owners include KCG Holdings (KCG), Goldman Sachs (GS), Citadel and the International Securities Exchange. Those of BATS include KCG also, as well as Bank of America (BAC), Citigroup (C), Credit Suisse (CS), Deutsche Bank (DB), JPMorgan (JPM) and Morgan Stanley (MS).
Feb. 15, 2013, 7:38 AM
"The Goldilocks era of post-crisis M&A has never been an if, but a when," says JPMorgan (JPM) vice-chair James Lee. "CEOs are declaring that day has come." Including the Berkshire buy, $40B in deals were announced yesterday and $140B this month. Transaction volume is up 27% Y/Y vs. an 8% slump for 2012. It should mean sweet profits for the newly lean banks.| Feb. 15, 2013, 7:38 AM | 8 Comments