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.<\/p>\n
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%.<\/p>\n
The 12% sell-off is valued at around R13.92 billion.<\/p>\n
“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.<\/p>\n
“We have had interest from numerous potential investors.”<\/p>\n
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.<\/p>\n
On Wednesday, there was speculation that the SA government-controlled Public Investment Corporation (PIC) was in talks to increase its stake in the company.<\/p>\n
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%.<\/p>\n
The Financial Times,<\/a>\u00a0reported 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.<\/p>\n 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.<\/p>\n Absa sale a step closer: report<\/strong><\/a><\/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 is selling off its stake in Absa \u2013 confirmed<\/a><\/strong><\/p>\nMore on Absa<\/h3>\n