Investment Strategies

Singapore Public Fund Cuts Citi Stake, Says Committed To Holding UBS

Tom Burroughes Editor London 22 September 2009

Singapore Public Fund Cuts Citi Stake, Says Committed To Holding UBS

The Singapore government has cut its stake in Citigroup to less than 5 per cent, realising a $1.6 billion profit as the city-state’s investment companies reduce holdings in European and US banks, according to Bloomberg.  

Government of Singapore Investment Corp sold the stock after converting preferred shares in the New York-based bank into a more than 9 per cent common-equity stake, it said, the news service reported. The company, manager of more than $100 billion of foreign-exchange reserves, also has a $1.6 billion paper profit on its remaining holding.

Citigroup shares have surged more than fourfold since falling below $1 on 5 March.

GIC exchanged $6.88 billion of convertible preferred stock for Citigroup common shares at $3.25 each on 11 September, together with the US government and other investors, the news service. GIC ended up with a stake of more than 9 percent in Citigroup following the exchange.

GIC said it was committed to its $18 billion of investments in Citigroup and UBS.

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