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Citigroup lays loss-making Egg

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Prudential waves goodbye to double yolker

By Christopher Williams • Get more from this author

Posted in Financial News, 29th January 2007 18:22 GMT

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Prudential PLC, the British financial services company, is to sell its loss making internet banking unit Egg to Citigroup for £575m ($1.127bn) cash.

Since launching in 1998, Egg has become the world's largest purely online banking outfit, but last year made a loss on the tidal wave of personal debt which saw record numbers declare bankruptcy. Murmurs that the Pru would ditch Egg have been bubbling under for a while.

George Awad, EMEA CEO, Citigroup Global Consumer Group, said: "We like Egg’s brand; we like Egg’s platform; we like Egg’s customer engagement model; and we like Egg's customer set."

So, to recap; George likes Egg. Citigroup said the deal should close in the next 60 to 90 days, subject to the regulatory thumbs up.

Citigroup's take on the deal is here. ®

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