Barclays to Sell Stake in Barclays Africa Group -- 2nd Update
May 04 2016 - 2:09PM
Dow Jones News
By Max Colchester, Margot Patrick and Matina Stevis
LONDON -- Barclays PLC said Wednesday that it will sell a 12.2%
stake in its African unit to an array of investors, as the British
bank pushes ahead with its retreat from the continent.
In a statement the bank said that South Africa's state pension
fund, the Public Investment Corporation SOC Limited, has agreed to
buy up to 1.2% of Barclays Africa Group Ltd. shares. The rest of
the 103.6 million shares will be sold to investors preapproved by
the South African regulator, with a price set overnight. The sale
should raise around GBP700 million for the British bank.
Barclays previously said that it intends to cut its 62% stake in
Barclays Africa over the next two or three years. If this share
sale goes ahead as planned then its stake will be reduced to just
above 50%."This is an important first step," Barclays Chief
Executive Jes Staley said in a statement.
Last week Bob Diamond, Barclays's former chief executive, said
he was putting together a bid for Barclays's entire stake in
Barclays Africa, with funding lined up from U.S. buyout firm
Carlyle Group and other investors including several
sovereign-wealth funds. They plan to buy the stake, and then
potentially combine Barclays Africa with Atlas Mara Ltd., the small
African banking group Mr. Diamond co-founded in 2013.
The consortium of investors has finished raising funding and
will bid for the remaining 50.1% share of Barclays Africa, a person
familiar with the situation said. They haven't yet made an offer to
Barclays.
Mr. Diamond and his business partner, Ashish J. Thakkar were in
Johannesburg Wednesday and met with South African regulators and
other local stakeholders, the person said.
Barclays is shedding its African business as regulatory pressure
ramps up and the bank's management looks to free up resources to
invest in other parts of its franchise.
Because of Barclays's size, regulators make the bank hold GBP650
million ($927 million) of extra capital against its Africa unit. A
smaller, less-risky bank wouldn't have to do this. Barclays also
estimates that a U.K. tax on bank balance sheets means it would pay
an extra GBP200 million in levies by 2021 to keep its African unit
on the books.
Kick-starting the sale of Barclays Africa was a key test for Mr.
Staley, who has pledged to speed up the disposal of unwanted
assets. Last month the bank said it had agreed to sell its
Portuguese and Spanish credit card business and had entered
discussions to sell down its French retail franchise.
Write to Max Colchester at max.colchester@wsj.com and Margot
Patrick at margot.patrick@wsj.com
(END) Dow Jones Newswires
May 04, 2016 13:54 ET (17:54 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Barclays (NYSE:BCS)
Historical Stock Chart
From Mar 2024 to Apr 2024
Barclays (NYSE:BCS)
Historical Stock Chart
From Apr 2023 to Apr 2024