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.
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The bank said all of the remaining ordinary shares in Barclays Africa held by Barclays Pls or its subsidiaries, excluding Barclays Africa and its subsidiaries, not sold in the Placing, would be subject to a 90 day lock-up restriction from settlement.
South Africa’s state pension fund, the Public Investment Corporation SOC Limited, yesterday announced it had acquired 12.2 per cent for almost Sh90 billion.
“This is an important first step as we seek to reduce our shareholding in Barclays Africa to a level that achieves accounting and regulatory deconsolidation”, said Jes Staley, CEO of Barclays.
Barclays previously said it intends to cut its 62% stake in Barclays Africa over the next two or three years. It is now the second-biggest shareholder in BAG with a stake of approximately 6 percent.
“This is an important first stage of our sell-down and keeps open both strategic and capital markets options for the remainder of our 50.1% shareholding”, the bank said. A spokesman for Atlas Mara declined to comment.
Following the sale, Barclays retains a 50.1% stake in one of Africa’s largest banking groups.
Analysts noted that having new owners for the Barclays Africa business could trigger a rebrand of the bank’s branches across all its African markets.
Mr. Diamond and his business partner, Ashish J. Thakkar were reportedly in Johannesburg on Wednesday and met with South African regulators and other local stakeholders. Diamond, who has said he has lined up the capital and long-term investors for a potential offer, would combine the business with his African-banking company Atlas Mara Ltd. The bank would like to reduce its holdings to below a controlling level, or to sell the stake entirely.
It’s not likely that Diamond would be able to buy what remains of Barclays Africa, said Brad Preston, chief investment officer at Mergence Investment Managers, which has 20 billion rand of assets.
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Diamond has not elaborated on what form the financing he has put together would take.
