LONDON — Citi Group Inc. has agreed to pay about $1.6 billion to buy out a $2.4 billion debt deal from its lenders, including Citigroup Inc. Citi and its lenders agreed to an $800 million cash payment, according to people familiar with the matter.
The deal is subject to regulatory approval and a number of conditions.
Citigroup has not yet announced the terms of the deal.
The company also agreed to give up certain equity in Citi Global Markets Inc., the parent of Citi’s international exchange and the world’s biggest money transfer market, the people said.
The new deal also will include the divestiture of $250 million in cash.
CITIGROUP DISCUSSES COLLAPSE IN COLLABORATION WITH CITICI CITI has faced criticism in recent years for a sluggish performance.
Citing the company’s slow growth, analysts and analysts have questioned whether the company can survive its expansion into emerging markets and forgoing the investment in new technology and its financials.
In February, Citi cut its full-year forecast by $500 million to $2 billion.
Citoigroup’s stock has risen by more than 50% since the announcement of the Citi-Citi deal.