Citi to sell stake in Bellsystem24 to Bain Capital for $1 bn

NEW YORK: Financial services major Citigroup today said it will sell its entire stake in Japanese telemarketing entity Bellsystem24 to US-based private equity firm Bain Capital for around $1 billion.

Citi has reached an agreement to tender its 93.5 per cent stake in Bellsystem24 to an acquisition corporation of Bain Capital Partners.

Citi would receive a cash consideration of 93.5 billion yen ($1 billion) for its 93.5 per cent stake in Bellsystem24, Citigroup said in a press release.

Citigroup owned Bellsystem24 through Citigroup Capital Partners Japan Ltd.

Reportedly, Bain Capital earlier this month had clinched the exclusive bidding rights with Citigroup Inc to buy the Japanese Telemarketer.

The sale of Bellsystem24, was a part of Citigroup's global effort to raise further capital.

"After completion of this transaction, assets will have been reduced by $1.2 billion, in line with Citi's goal to reduce the assets in Citi Holdings while optimising their value," Citigroup said.

The tender will be launched on or before November 20, 2009 and be settled on December 30, 2009 subject to regulatory review and customary conditions.

Citigroup further said : "It is not expected to have a material impact on Citi's net income or its capital ratios."