Government in talks with Barclays over Absa stake: report
South Africa’s state pension fund, the Public Investment Corporation (PIC), is in talks with Barclays over a bigger stake in its African business, which includes Absa.
This is according to a report by Reuters, citing a source with direct knowledge of the matter.
The PIC, managing assets of over R1.8 trillion, is wholly owned by the South African Government, with the Minister of Finance as shareholder representative.
It is the second-biggest shareholder in Barclays Africa, with a current holding of approximately 6%.
“There are discussions going on about the PIC increasing its stake in Barclays Africa,” the source said, declining to be named because the matter is private. “There’s no PIC-led consortium. It’s just the PIC.”
Barclays Africa Group, which includes Absa, claimed in March that there is no lack of interest from buyers seeking a stake in the company after Barclays announced that it will be selling down its stake to less than 20% over the next two to three years – from 62%.
The Financial Times, reported in April that former Barclays chief executive Bob Diamond has teamed up with US private equity group, Carlyle, to prepare a bid for Barclays Africa.
The FT said that regulators are expected to block any attempt of a merger deal between Barclays Africa and other local banks, including Nedbank and FirstRand.
“As a regulator, we would not be comfortable with private equity play for any of the banks,” deputy governor Kuben Naidoo said at a press conference in Pretoria this week.
Barclays declined to comment, Reuters said.
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