{"id":119477,"date":"2016-04-08T09:04:35","date_gmt":"2016-04-08T07:04:35","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=119477"},"modified":"2016-04-08T09:33:56","modified_gmt":"2016-04-08T07:33:56","slug":"inside-barclays-plan-to-sell-absa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/banking\/119477\/inside-barclays-plan-to-sell-absa\/","title":{"rendered":"Inside Barclays’ plan to sell Absa"},"content":{"rendered":"

UK banking group Barclays is preparing to start selling off its majority stake in Barclays Africa – known as Absa in South Africa – according to IOL<\/a>.<\/p>\n

The group announced in March 2016 that it would be exiting its Africa business, of which it controls a 62% stake.<\/p>\n

Barclays\u00a0said it would sell down its stake in Barclays Africa \u201cto a level which permits accounting and regulatory deconsolidation\u201d over the next two to three years.<\/p>\n

The group said it will have a\u00a0\u201cnon-controlling\u00a0investment\u201d in the group over time, pegged at under 20%.<\/p>\n

According to a Bloomberg report, citing three sources involved, the banking group will\u00a0sell an initial 10% stake in Absa\u00a0to “several large investors”, while keeping the option to divest its entire holding.<\/p>\n

The sale of a 10% stake could bring in as much as $740 million (R11.25 billion) for the company, the report said – with the\u00a0group’s entire holding is worth as much as $4.6 billion (R70 billion).<\/p>\n

Barclays Africa has a market capitalization of R113 billion.<\/p>\n

The sources said the company’s options are open, and it could even retain a controlling stake – or sell everything to one buyer.<\/p>\n

If a single buyer can’t be found, the bank will move to its initial plan of selling down to under 20%, the report said.<\/p>\n

In its full year results in March, Absa reported growth in profits, up 10% to R14.3 billion from R13.0 billion.<\/p>\n

Revenue grew 6% to R67.2 billion, as net interest income increased 8% and non-interest income rose 5%, while operating expenses grew 5% to R37.7 billion.<\/p>\n

However, the group said that tough conditions in South Africa hampered its growth in the region.<\/p>\n

More on Absa<\/h3>\n

No shortage of interested buyers for Barclays Africa: report<\/a><\/strong><\/p>\n

Fitch downgrades Barclays Africa on sale plans<\/a><\/strong><\/p>\n

Barclays Africa may already have a willing buyer<\/a><\/strong><\/p>\n

Barclays exit not because of SA economy: Ramos<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

UK banking group Barclays is reportedly preparing to start selling off its majority stake in Barclays Africa – known and trading as Absa in South Africa.<\/p>\n","protected":false},"author":10,"featured_media":109375,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[961],"tags":[29,3300,26],"class_list":["post-119477","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking","tag-absa","tag-barclays","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/119477","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=119477"}],"version-history":[{"count":3,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/119477\/revisions"}],"predecessor-version":[{"id":119487,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/119477\/revisions\/119487"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/109375"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=119477"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=119477"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=119477"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}