Investment bank Citi appears to have cleared the excess stock it has held in Goodman Group, offloading a major parcel of shares worth $813m in the industrial property group on Friday morning.
The investment bank crossed 23 million shares at $35.35 each after the stock closed on Thursday at $36.26.
It takes Citi’s financial hit to $75m on the block trade for China Investment Corporation after it underwrote a deal to sell 50.4m shares at $37.55, which was a discount of 1.5 per cent to its last traded price.
But after backing the selldown at $1.9bn by guaranteeing the price to CIC, it then had to reprice the deal lower when demand was lacking to $36.85 to get the stock away.
Even then it appeared it was then left with 23 million shares, which appear to have been sold Friday morning.
It comes ahead of the investment bank’s bonus payments, which are due shortly, and the botched deal is expected to have an impact on those payments, particularly its equity capital markets unit.
Sources say that while block trades can be repriced lower in the United States after being launched, the situation is rare in the Australia market.
Goodman Group has been in hot demand due to its exposure to data centres.
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