Citigroup SA (C) Tuesday said it reached an agreement to sell its Colombian pension fund Citi Colfondos to a group of private equity funds.
Francisco Aristiguieta, Citigroup’s top executive for Colombia and the Andean region, said in a statement the sale is part of Citigroup’s general plan established in January to focus on the company’s core business and making value from the sale of non-core assets.
“The transaction is not expected to have a material impact on Citi’s net income,” the statement said.
The companies didn’t disclose the cost of the operation.
The group of buyers is led by local, closely held investment firm Grupo Colpatria SA, New York-based equity fund Palmfund Management LLC and private equity fund Linzor Capital Partners.
Colpatria controls Colombian bank Banco Colpatria Red Multibanca SA.
The transaction is expected to close in the fourth quarter and is subject to the approval of the local market regulator.
Citi Colfondos is Colombia’s fourth largest pension funds with assets worth $5.6 billion and 2.1 million customers. Citigroup bought a minority stake in Citi Colfondos in 1994 and secured 100% of the fund in 2006.