Kuwait fund sells stake in Citigroup for a profit of $1.1bn

Kuwait's sovereign wealth fund said it pocketed a profit of $1.1 billion by selling its 5 per cent stake in Citigroup for $4.1 billion.

The Kuwait Investment Authority had purchased preferred shares in the Citigroup for $3 billion during the peak of recession in 2008 and later converted its stock into ordinary shares.

The sale represented an earning of 37 per cent on investment.

Earlier in September, GIC, a wealth fund of Singapore, sold half of its stake in Citigroup for $1.6 billion in profit.

According to an estimate, the Kuwait fund possesses assets of more than $200 billion. 

IT may be noted here that the concerned sale emerged at a time when Citigroup is making efforts to free itself from government’s troubled asset relief program.

Citigroup shares, which earlier this year plunged to less than $5, closed at $17.40-a-share on Friday.