LONDON—Barclays PLC on Thursday said it had raised £ 603 million ($874.1 million) by selling 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.

South Africa's state pension fund, the Public Investment Corporation SOC Limited, agreed to buy up to 1.2% of Barclays Africa Group Ltd. shares and the rest of the 103.6 million shares were sold to investors preapproved by the South African regulator. The shares were sold in a placing at 126 South African rand ($8.4) a share.

Barclays previously said it intends to cut its 62% stake in Barclays Africa over the next two or three years. The share sale reduces Barclays's stake to just above 50%."This is an important first step," Barclays Chief Executive Jes Staley said in a statement on Wednesday announcing the sale.

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 £ 650 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 £ 200 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.

Ian Walker contributed to this article.

Write to Max Colchester at max.colchester@wsj.com, Margot Patrick at margot.patrick@wsj.com and Matina Stevis at matina.stevis@wsj.com

(END) Dow Jones Newswires

May 05, 2016 03:55 ET (07:55 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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