Unibanco Brasilrs (NYSE:UBB)
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From Jun 2019 to Jun 2024

Citigroup Inc. (C) raised a total of 2.2 billion Brazilian reals ($983 million) with the sale of its stake in the Brazilian credit card networking services provider Redecard SA (RDCD3.BR) through a secondary offer, more than the BRL2 billion previously announced, Redecard said Thursday in a statement.

Citigroup sold a total of 90.32 million shares of Redecard on the Brazilian Stock Exchange, or Bovespa, with each share priced at BRL24.50. Foreign investors acquired 87.4% of the shares under the offer.

Redecard said the initial value of the operation increased after it offered an extra lot of shares due to strong demand.

The shares were sold in Brazil and also to foreign investors in the form of Global Depositary Receipts, or GDRs. Each GDR represents two common shares.

Before the current operation, Redecard was jointly controlled by Brazilian banking giant Itau-Unibanco and Citigroup. Itau-Unibanco had a combined 46.42% stake in Redecard, while Citigroup had a 17% stake.

Earlier this week, Itau Unibanco announced that it exercised its option to acquire 24 million shares of Redecard, becoming the company's controller.

Itau-Unibanco was formed late last year by the merger of Itau (ITU), at that time Brazil's third-largest bank, and Unibanco (UBB), at that time the country's fourth-largest bank.

-By Rogerio Jelmayer, Dow Jones Newswires; 5511-2847-4521; rogerio.jelmayer@dowjones.com