이 기사는 2021년 06월 28일 07:24 thebell 에 표출된 기사입니다.

Citibank Korea is speeding up a process to sell its consumer banking operations, with many financial companies attracted to the bank’s credit card and wealth management (WM) business.

Citibank Korea has opened a virtual data room to its potential buyers which submitted their letters of intent, industry sources said Thursday. Most of them have reportedly completed their due diligence on the target’s assets and weighing up whether to participate in the final round of bidding.

Citigroup and its Korean unit haven’t decided whether to sell the retail banking operations here through a purchase and assumption transaction or in parts by setting up a new entity.

The lender aims to finalize its decision on its exit strategy by the end of this month and hold the final round of bidding.

Citigroup plans to select its preferred bidder next month, skipping a preliminary round of bidding, to streamline the procedures.

Industry watchers said there aren’t many strong prospective buyers that submitted their letters of intent, which seems to be the reason why the group has skipped the selection of shortlisted bidders and additional due diligence processes.

“It appears that headquarters of Citigroup has ordered to complete the deal as quickly as possible,” said an official at a financial company which conducted due diligence on Citibank Korea. “We have reviewed the data with the partial sale in mind, but now we are trying to figure out possible positive effects after acquiring the WM business and credit card assets.”

Financial companies which looked at the document said Citi Shinsegae Card and offshore funds (WM business) are most attractive among Citibank Korea’s assets as they have many loyal customers.

Even if Citibank Korea sells its card business separately, the business won’t likely to lose its attractiveness as all existing user benefits and rights will be inherited.

“Most of Citi’s card users are VIPs,” said a source in the investment banking industry. “It won’t sell the business to any buyer because selling it means selling its customers.”

Citibank Korea’s offshore funds are also attractive. The lender has actively sold offshores funds in the domestic market for at least six years. As it has mostly recommended bond funds that have proven long-term performance for at least 10 to 20 years, the lender has received positive response from high net worth individuals. Offshore funds have led the lender’s steady increase in non-interest income.

Financial holding companies that aim to expand their WM businesses are attracted to Citibank Korea’s strong abilities in product selecting.

In a bid to speed up the sale, Citibank Korea recently suggested its employees take voluntary retirement as an option. If the lender starts receiving voluntary retirement applications from workers, it will mark the first of such move since 2014. (Reporting by Hyun-ji Sohn)