Citigroup Inc. agreed to sell its consumer banking franchises in Indonesia, Malaysia, Thailand and Vietnam to UOB Group.

UOB will pay Citi cash consideration for the net assets of the acquired businesses, subject to customary closing adjustments, plus a premium of S$915 million, or $690 million.

The transaction includes retail banking and credit card businesses but excludes Citi's institutional businesses in all four countries. The agreement covers all related Citi staff, with about 5,000 consumer bank and supporting employees expected to transfer to UOB upon completion of the transaction.

Upon closing, Citi expects the transaction to result in the release of approximately $1.2 billion of allocated tangible common equity, as well as an increase to tangible common equity of over $200 million, according to a news release. As previously announced, Citi's exit from its consumer franchises in 13 markets across Asia-Pacific, Europe, the Middle East and Africa is expected to release about $7 billion of allocated tangible common equity over time.

Completion of the divestitures in each country will not be conditional on the completion of the divestitures in the other countries but will be conditional on obtaining regulatory approvals relevant to each country. Completion is estimated to take place between mid-2022 and early 2024, depending on the progress and outcome of the regulatory approval process.

Citi's Banking, Capital Markets and Advisory Group is the exclusive financial adviser to Citi in the transaction. Credit Suisse (Singapore) Ltd. is the financial adviser to UOB in the deal and Allen & Overy LLP (Singapore) is its legal adviser.