A Citigroup-led consortium has successfully completed the acquisition of a 85.6% stake in China's Guangdong Development Bank.
Citigroup, China Life, State Grid, and CITIC Trust each now own a 20% stake in Guangdong Development Bank (GDB). In addition, IBM holds a 4.74% stake and Guangdong Finance Investment Holding holds a 0.85% stake.
Under the terms of the acquisition, Citigroup will have a significant influence upon GDB’s management but the Chinese bank will continue to operate as a locally licensed bank, with its own board, management and brand identity.
Citigroup has designated Michael Zink to be president of GDB. Mr Zink previously held a series of senior management positions for Citigroup over an 18-year duration.
The consortium will adopt the role to enhance GDB’s corporate governance standards, instill operational and lending best practices, improve risk management and internal controls, upgrade the bank’s information technology infrastructure, and further develop its customer service and product offerings.