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JTC PLC on Monday said that it has acquired Citigroup Inc’s global fiduciary and trust administration services business for a total consideration of $80 million. According to the Jersey-based professional services company, the acquisition is subject to customary regulatory approvals, and is expected to complete in the first half of next year. It will be funded from JTC’s existing cash reserves. The business, JTC explained, provides a full suite of tailored trust solutions, and operates from seven ‘high quality trust jurisdictions’. More specifically, these are New York, Delaware, South Dakota, Jersey, Singapore, Switzerland and the Bahamas. Once integrated, JTC expects Citi Trust to achieve guidance of 33% to 38% underlying earnings before interest, tax, depreciation and amortisation margin in the medium term. Further, the Citi Trust buy is expected to deliver mid-single digit accretion to JTC’s earnings per share in 2025, and high single digit EPS accretion in 2026. ‘The decision to sell our personal trust administration and fiduciary business allows us to focus our resources on areas that will create impact for our global clients and drive growth for our Wealth business. We will continue to provide clients with leading investment management, wealth planning, lending and banking services, while JTC will provide the highest quality trustee and fiduciary services,’ said Ida Liu, head of Citi Private Bank. Shares in JTC were trading 2.0% higher at 1,114.00 pence each in London on Monday morning Copyright 2024 Alliance News Ltd. All Rights Reserved.
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