It has been some time in the making and won’t be the last IPO or divestiture out of Citigroup Inc. (NYSE: C). The company is proceeding to divest its Primerica Inc. via an initial public offering.
Some fail to see a strategic fit in the supermarket model as this company sell term-life insurance and other investment products, ultimately acting as a referral mechanism for Citi loans and other services.
We have long had Primerica as a divestiture candidate, although the IPO is being taken as the exit rather than a cheap quick sale. Vikram Pandit wants to focus the plan of the copany and is taking action to sell off what is not a part of the long-term goals. Citi will exits its remaining stake in Primerica after the IPO is completed.
This has nothing to do with the Morgan Stanley venture for Smith Barney, nor does it have to do with the international assets which have been and will continue to be sold of and divested. Citi itself was the only listed underwriter for the company, although that may change as the IPO gets nearer.
Of course the terms are not disclosed, nor is what the stake will be in the company held after the IPO. The filing noted “up to $100 million of stock,” but those figures are often grossly changed.
Primerica is profitable as its first half of 2009 earnings was reported as $244.7 million . with revenues of $1.09 billion. That is lower than a year ago period of $269.1 million in earnings on $1.19 billion in revenue, but that is par for the course in about all financial companies these days.
The full filing details are here from Primerica.
JON C. OGG
Take Charge of Your Retirement In Just A Few Minutes (Sponsor)
Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s simple quiz makes it easier than ever for you to connect with a vetted financial advisor.
Here’s how it works:
- Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
- Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
- Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.
Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.