Barclays starts Absa sell-off
Global banking group, Barclays has started its sell-off of Barclays Absa – known locally as Absa – with the sale of a R14 billion chunk of the business.
According to a statement put out by the group, its first sale of the African asset will see it dispose of 103.6 million shares – or 12% of its majority stake, taking it down to 50.1%.
The 12% sell-off is valued at around R13.92 billion.
“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.
“We have had interest from numerous potential investors.”
The group has previously stated its intent to sell-off ownership of the company until it has around 20%, though the group has also said that it would be willing to give complete ownership to another buyer if such an offer presented itself.
On Wednesday, there was speculation that the SA government-controlled Public Investment Corporation (PIC) was in talks to increase its stake in the company.
This has been confirmed as Barclays named the PIC as an “anchor investor”, which increased its stake in the company by 1.2% (R1.4 billion), taking its total ownership up to 6.5%.
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.
More on Absa
Absa sale a step closer: report
Fitch downgrades Barclays Africa on sale plans
Barclays Africa may already have a willing buyer
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