Citigroup Withdraws as a Substantial Shareholder in Telix Pharmaceuticals Following Securities Lending Adjustments

Citigroup’s Substantial Shareholding in Telix Pharmaceuticals Ends on 30 June 2026

The update, dated 3 July 2026 and signed by Anja Frederikson of Citigroup Global Markets Australia Pty Limited, formally confirms that the Citigroup group ceased to hold a substantial interest in Telix Pharmaceuticals Ltd as of 30 June 2026. Under Australian corporations law, a substantial holder is defined as an entity holding 5% or more of voting shares in a listed company. Falling below this threshold mandates notification to the company via a Form 605.

The notice also reveals that the previous substantial holding notice was lodged on 1 July 2026, notably one day after the cessation date of 30 June 2026. This timing reflects administrative processing rather than any irregularity, as all underlying transactions occurred on 30 June 2026. The combined effect of multiple share movements across Citi entities on that date reduced the group's aggregate relevant interest below the 5% substantial holder threshold.

Securities Lending Agreements Drive Citigroup’s Reduction in Relevant Interest in TLX

The share movements disclosed were not typical market sales. Instead, the changes in relevant interest resulted from securities lending agreements governed by the Australian Master Securities Lending Agreement (AMSLA), the Global Master Securities Lending Agreement (GMSLA), and the Master Securities Lending Agreement (MSLA). These standard industry agreements allow institutional investors and their agents to lend shares to borrowers, usually in exchange for collateral, with an obligation to return the securities later.

Under these arrangements, lending entities’ relevant interest can fluctuate depending on their role as lender, borrower, agent lender, or collateral holder. In this instance, the net decrease in aggregate relevant interest across the Citi group on 30 June 2026 was due to shifts in securities lending positions, not outright share disposals on the market. This distinction is important for investors interpreting the notice, as it does not necessarily indicate a fundamental change in Citigroup’s long-term investment stance on Telix Pharmaceuticals.

Details of Share Movements by Citibank N.A. Sydney Branch on 30 June 2026

Two separate relevant interest changes for Citibank N.A. Sydney Branch occurred on 30 June 2026. The first was a reduction of 20,000 ordinary fully paid shares, linked to the branch’s role as Agent Lender and holder of securities subject to return obligations under a securities lending agreement. The second was a decrease of 627,228 ordinary fully paid shares, arising from the branch’s role as Agent Lender and holder of collateral securities in a tripartite arrangement, also subject to return obligations under securities lending agreements.

Combined, these movements represent a 647,228 share reduction attributable to Citibank N.A. Sydney Branch. In tripartite collateral arrangements, a third-party custodian or agent holds collateral on behalf of lender and borrower, with the agent lender’s relevant interest contingent on default or recall events. Annexure A schedules attached to the notice confirm that the agent lender cannot access collateral held by the triparty custodian unless a default event occurs.

Largest Single Share Movement: Citigroup Global Markets Limited’s 1.36 Million Share Decrease

The most significant individual change disclosed was by Citigroup Global Markets Limited, headquartered at Citigroup Centre, Canary Wharf, 33 Canada Square, London. This entity recorded a decrease of 1,359,579 ordinary fully paid shares on 30 June 2026, attributed to contracts under securities lending agreements with return obligations. This was the primary factor causing the group’s aggregate holding to drop below the substantial holder threshold.

Citigroup Global Markets Inc, based at 388 Greenwich Street, New York, also reported a decrease of 17,708 ordinary fully paid shares on the same date under similar securities lending terms. These international entities form part of the same Citigroup group whose combined relevant interests are assessed collectively for Australian substantial holding disclosure purposes.

Partial Increase Recorded by Citigroup Global Markets Australia Amid Overall Decline

Not all share movements on 30 June 2026 were decreases. Citigroup Global Markets Australia Pty Limited, the Australian entity and the party lodging this notice, recorded an increase of 143,236 ordinary fully paid shares. This increase arose from contracts subject to return obligations under securities lending agreements and ordinary course stock market transactions with standard terms.

This partial increase offset some of the larger decreases across other Citi entities but was insufficient to keep the overall group position above the 5% threshold. The net aggregate change across all Citi entities on 30 June 2026 resulted in a combined reduction of approximately 1,881,279 shares after netting increases against decreases. The exact final aggregate holding percentage after cessation was not disclosed in the notice.

Voting Rights Under AMSLA, GMSLA, and MSLA Agreements

A key feature of the securities lending agreements detailed in Annexure A is the allocation of voting rights. Under both loan and collateral schedules, voting rights for lent or pledged shares reside with the borrower, not the lending or collateral-holding entity. The schedules explicitly confirm that the borrower holds voting rights without restrictions under these agreements.

This means that during the loan or collateral period, the borrowing counterparties—described only as "various" in the notice—effectively control voting rights for those Telix Pharmaceuticals shares. This is standard in securities lending markets but is noteworthy for investors monitoring institutional voting behavior at shareholder meetings. The scheduled return date for lent securities is unknown, with borrowers retaining the right to return shares early under standard AMSLA, GMSLA, and MSLA terms.

Regulatory Framework for Form 605 Notices Under Australian Law

Filing a Form 605 Notice of Ceasing to Be a Substantial Holder is a mandatory requirement under Section 671B of the Corporations Act 2001. This obligation arises when a person or group holding 5% or more of voting shares in a listed entity falls below that threshold. The notice must be provided to the company as soon as practicable and within two business days of the event.

In this instance, cessation occurred on 30 June 2026, with the notice dated 3 July 2026, complying with the timeframe given the intervening weekend. The form requires detailed disclosure of each change in relevant interest since the last substantial holding notice, including dates, parties involved, nature of interest, and securities affected. Citigroup’s notice includes five line items covering four separate Citi entities, all dated 30 June 2026.

Impact on Telix Pharmaceuticals’ Institutional Ownership Following Citigroup’s Exit

Telix Pharmaceuticals is an ASX-listed company specializing in radiopharmaceuticals for targeted cancer treatment and imaging. The firm has attracted considerable institutional interest amid rising global demand for nuclear medicine products. Citigroup’s removal from the substantial holder register signals a change in the disclosed institutional ownership landscape, although Citi entities may continue to hold positions below the 5% disclosure threshold.

Investors should note that substantial holder disclosures only capture holdings at or above 5%. Any residual holdings by Citi below this level are not required to be disclosed via Form 605 or Form 604 notices. The immediate impact on Telix’s share price was not evident from public data. Market participants may watch for further substantial holder notices from other institutional investors indicating shifts in TLX’s shareholder base.

Investor Considerations Following Citigroup’s Cessation as a Substantial Holder in TLX

Investors should monitor whether new substantial holder notices are submitted for Telix Pharmaceuticals in the coming weeks, either from Citi entities re-crossing the 5% threshold or from other institutional investors altering their positions. Since the share movements stemmed from securities lending rather than outright sales, it is possible that lent shares could be returned to Citi entities later, potentially triggering a new Form 604 Notice of Change in Substantial Holding if the aggregate position rises to 5% or above.

Additionally, investors should follow Telix Pharmaceuticals’ broader corporate developments, including operational, clinical, or commercial updates that might influence institutional interest. Securities lending activity of this magnitude typically reflects portfolio management strategies rather than fundamental shifts in investment outlook. Nonetheless, the timing and scale of these movements may attract increased scrutiny from market observers tracking ownership dynamics of one of Australia’s leading radiopharmaceutical companies.