By DANIA SAADI
DUBAI --The Kuwait Investment Authority, the Gulf country's sovereign wealth fund, said Sunday it sold a $4.1 billion stake in Citigroup Inc. making a profit on the deal.
The fund, also known as the KIA, said it made a $1.1 billion profit from the sale, or a 36.7% return on its investment, according to an emailed statement.
"The authority converted its preferred shares to common shares following negotiations with the bank's administration, selling all of the shares for $4.1 billion," the statement said.
The KIA invested $3 billion in Citi and another $2 billion in Merrill Lynch & Co. in 2008 as Wall Street lenders turned to outside investors to replenish capital hit by subprime-mortgage losses in the U.S.
Sovereign wealth funds are unwinding their investments in Western banks after buying big chunks of lenders when share prices hit rock bottom at the height of the global financial crisis.
The KIA is one of the oldest and most experienced of a handful of Middle East government investment funds, with assets estimated at more than $200 billion. Its investment in Citi had drawn criticism from Kuwaiti lawmakers fearing big losses for the nation's overseas wealth.
Read More >>>> Kuwait Sells $4.1 Billion Citi Stake
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