Absa bank on Monday responded to reports of its imminent sale by Barclays bank, which owns 62.3% stake in the African group.<\/p>\n
The Financial Times reported on Friday that Barclays would announce the sale of Barclays Africa\u00a0this week.<\/p>\n
Barclays bank is expected to announce the sale of its African business on Tuesday (1 March), according to the publication.<\/p>\n
Citing people familiar with the matter, FT reported that the group no longer sees Barclays Africa \u2013 known locally as Absa \u2013 as core to its strategy.<\/p>\n
The Wall Street Journal first reported that Barclays aimed to sell in Africa. Absa, the paper said, has struggled in recent years, while the weaker rand and the state of the local economy is also a point for concern.<\/p>\n
\u201cBarclays does not own all of the equity, but it owns 100% of the risk if something goes wrong,\u201d FT cited a source as saying.<\/p>\n
Barclays’ stake is worth R78 billion (\u00a33.5 billion) at current market prices. Investment bankers say there are no obvious strategic buyers at this stage, the FT said.<\/p>\n
In a statement on Monday, Absa said:<\/p>\n
Barclays Africa Group Limited (BAGL) wishes to reiterate that we remain committed to Africa, where we continue to be optimistic about our growth prospects, and to operate in the normal course of business.<\/p>\n
UK-based Barclays PLC, which owns 62.3% of Barclays Africa, yesterday said it continues to evaluate its strategic options in relation to its shareholding in Barclays Africa Group Limited and expects to update the market at the time of its 2015 full-year results announcement on 1 March.<\/p>\n
Barclays Africa is an independently-listed entity on the Johannesburg Stock Exchange, regulated by the South African Reserve Bank and we are well capitalised with a track record of strong returns.<\/p>\n
Maria Ramos, Barclays Africa Group Chief Executive said: \u201cWe continue to offer a full and integrated range of products and services to more than 12 million customers in 12 countries across Africa and our customers can be just as confident doing business with us today as they have always been. With an independent board and a separate listing on the Johannesburg Stock Exchange we are deeply rooted in Africa and remain firmly in control of our future.\u201d<\/p>\n
In 2013, Barclays Africa was established as a leading African bank when 12 banks across the continent were brought together.<\/p>\n
\u201cIn doing so, we put the future of this organisation firmly in our own hands,\u201d Ms Ramos said.<\/p>\n
Barclays Africa Group Limited is the majority (in some cases sole) shareholder of the BAGL operations in South Africa, Kenya, Botswana, Ghana, Zambia, Mauritius, Mozambique, Seychelles, Uganda and Tanzania (Barclays Bank Tanzania Limited and National Bank of Commerce Limited). Any announcement relating to Barclays PLC\u2019s shareholding in BAGL does not impact the shareholding and ownership of these operations.<\/p>\n
\u201cWe continue to be optimistic about our prospects in Africa, where we have a strong franchise with assets of over R1 trillion. We are deeply committed to the success of our continent. Our destiny is in Africa,\u201d Ms Ramos says.<\/p><\/blockquote>\n
In a note on Sunday evening, Barclays said: \u201cBarclays notes the recent press speculation regarding a potential sale of its shareholding in Barclays Africa Group Limited (BAGL).<\/p>\n
“The Board continues to evaluate its strategic options in relation to its BAGL shareholding and expects to update the market at the time of its 2015 Full Year Results Announcement on 1 March 2016.\u201d<\/p>\n
Barclays and Barclays Africa Group will announce their 2015 financial results on Tuesday.<\/h3>\n
More on Absa<\/h3>\n
Barclays to announce Absa sale: report<\/a><\/strong><\/p>\n
Government wants a bigger stake in Absa: report<\/a><\/strong><\/p>\n
Barclays is pulling out of Absa: report<\/a><\/strong><\/p>\n
Absa revolt as staff threaten to join Malema protest: report<\/a><\/strong><\/p>\n