A gentleman passes by a UOB bank branch in Singapore November 4, 2020. REUTERS/Edgar Su

SINGAPORE, Jan 14 (Reuters) – Singapore loan provider United Overseas Financial institution (UOB) (UOBH.SI) has agreed to obtain Citigroup’s (C.N) buyer firms in Indonesia, Malaysia, Thailand and Vietnam for about S$4.915 billion ($3.65 billion), funding the acquire with the bank’s extra money.

UOB, which previously has a substantial presence in Southeast Asia, said in a statement that it would obtain Citi’s unsecured and secured lending portfolios, prosperity management and retail deposit enterprises in the four nations around the world.

“UOB thinks in Southeast Asia’s long-time period likely and we have been disciplined, selective and affected individual in trying to find the proper chances to mature,” stated Wee Ee Cheong, UOB’s deputy chairman and chief executive.

The lender claimed the proposed acquisition is predicted to be financed by means of its excess money, and that it continues to be cozy sustaining its dividend coverage of a 50% dividend payout ratio.

“The complete money consideration for the proposed acquisition, will be calculated dependent on an mixture premium equivalent to S$915 million plus the internet asset benefit of the buyer business as at completion,” UOB stated.

It mentioned Citigroup’s consumer enterprise in these marketplaces experienced an combination net asset value of about S$4 billion and a customer base of about 2.4 million as at 30 June 2021. These produced profits of about S$.5 billion in the first half of 2021.

($1 = 1.3461 Singapore dollars)

Reporting by Anshuman Daga in Singapore Supplemental reporting by Indranil Sarkar in Bengaluru Enhancing by Rashmi Aich and Kenneth Maxwell

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