citigroup news

Citigroup Inc. is going to sell its OneMain Financial Holdings Inc. Such measures are taken in order to part with distressed assets and to work only with affluent consumers. OneMain Financial is a subdivision of the large Citigroup Inc. and it appeared in times of financial crisis. The unit’s target was to process assets that ultimately should have been eliminated or nullified. Thus the company made a big step by filing simple shares for initial public offering.

Citigroup Inc. possessed around $880 billion of assets before OneMain began its existence. And during the next years this amount started to decline and in the second quarter of 2014 Citigroups’ assets total only $110 billion.

OneMain Has a High Investment Attractiveness

OneMain Financial Holdings Inc. with the amount of $10 billion bank capital works with a wide audience providing it with highly demanded today short-term personal loans. These loans are suggested to cover some significant expenses, to cover the cost of cars renovations or the cost of purchasing such things like TV-sets, new furniture, refrigerators and so on.

Citigroup intended to break away the business in 2011 but the potential vendee couldn’t drive the necessary amount of funds to finance the deal.

Citigroup Inc. Aims to Raise Solid Money for the Deal

According to the information which appeared in the Wall Street Journal, Springleaf Holdings Inc. intends to buy OneMain Financial Holdings Inc.

Some economists assume that failing for an initial public offering is a Citigroup’s ploy aimed to attract some other investors which may suggest more beneficial deals.

Investors like Fortress and other private investment funds show interest in OneMain Financial Holdings Inc. as it is known from numerous information sources. But Mike Corbat, Citigroup’s CEO, said that the price suggested by investors was not attractive.

OneMain possesses 1,141 thousand divisions over the country and services more than 1 million consumers. $15 000 is allocated in the loan portfolio of the company. Moreover around $3.5 billion of new funds was advanced in the past year. The company is working in the field of the most popular and attractive today low-interest personal loans.

In the beginning of October Securities and Exchange Commission of the US accepted a $50 million value application from OneMain for filing. The amount of money raised by the company would probably be higher.

Neither the amount of filed stocks for sale nor their anticipated price is known. New York Stock Exchange is planned to be the place for listing the company’s stocks.