Citigroup Sells Shanghai Bank Stake for $349m

Citigroup Inc. says it has sold its 2.71 percent stake in Shanghai Pudong Development Bank for an after-tax gain of about $349 million.

The New York-based bank said the sale, worth $668 million according to Citigroup, was made via a block trade to unnamed institutional investors.

Citigroup and the state-owned Shanghai bank said they plan a new “strategic arrangement” for their cooperation that will involve using Citi’s worldwide networks and credit lines to support SPDB’s global expansion, Associated Press reported.

Last month, Citi’s Chinese subsidiary received regulatory approval to become the first U.S.-based bank to issue its own credit cards in China.