Citigroup and Computershare in equity alliance
28 August 2002 | 3417 views | 0
Citigroup has been offered a maximum five per cent stake in Computershare, under an alliance agreement aimed at raising the Australian company's profile as it enters the North American markets.
The companies have formed a joint business committee to evaluate new business opportunities over the next two years. The two firms say the alliance has the potential to deliver new revenue opportunities to both parties, in particular to Computershare in North America in its initial stages.
As part of the agreement, Computershare has granted Citigroup Global Investments options on two per cent of its issued share capital at an exercise price of A$1.83.
The registry group says it will issue additional options - up to approximately 3% of Computershare's issued share capital - conditional upon appropriate new business arising from the alliance.