Citigroup will proceed with its plan to absorb Nikko Cordial Corp., Japan’s third-largest brokerage, in a share swap, both companies said Friday.
The agreement that Citigroup would offer 0.602 of its own shares for each Nikko share was reached in November. Before the deal, Citigroup had owned 68 per cent of Nikko.
Under the deal, Citigroup will pay Nikko Cordial shareholders the equivalent of $15.9 of its stock for each Nikko share.
The price is based on Citigroup’s volume weighted average price on the New York Stock Exchange from January 15-17 and a foreign exchange rate agreed to last year.
There had been some concern about the deal going through because of the recent plunge in Citigroup shares after it announced a massive write-down for unexpected subprime mortgage-related losses. (AP)
Citigroup to absorb Nikko Cordial in share swap