Boston, MA 09/15/2014 (wallstreetpr) – Citigroup Inc (NYSE:C) has taken most of its units to the New York Stock Exchange or NASDAQ through IPO, and its latest plan is for the personal loan unit, OneMain Financial Inc. According to the Bloomberg, Citigroup has planned that by the end of this month, OneMain Financial shall go for IPO.
Offers from Potential Buyers Expected
Bloomberg reported that OneMain is worth approximately $4 billion at present. With this valuation, the company might also start magnetizing prospective buyers. The hints of its sale are already in the market.
The Chief Executive Officer of Citigroup Inc (NYSE:C), Michael Corbat, in May 2014 had announced that Citigroup Inc (NYSE:C) was willing to dispose OneMain Financial Inc. through any of the three modes, viz. outright sale to any private firm, or public stock offering, or through combination of these two methods; provided the prices were good.
Mr. Corbat had also said at the investors’ conference that despite making sub-prime loans as well as being profitable, OneMain is not suitable for the strategy of Citigroup Inc (NYSE:C).
Rival May Acquire OneMain
According to Bloomberg, Springleaf Holdings Inc (NYSE:LEAF), OneMain’s rival that provides instalment loans, hinted that it might be interested in the acquisition of this company. People close to the matter also told Bloomberg that over the past few months, Citigroup Inc (NYSE:C) has also negotiated with Springleaf and a few more suitors, but none of the discussions has been formalized.
OneMain takes up loans valued between $3,000 and $15,000, and both OneMain and Springleaf are two of the largest instalment loans providers of the U.S.
OneMain: Meant for Housing Unwanted Assets
OneMain belongs to Citi Holdings unit of the parent company. It was created for housing the unwanted assets, which came to the company after financial crisis. Two years ago, Citigroup Inc (NYSE:C) had tried selling OneMain, but it did not translate into a formal deal..
