Barclays completes Africa withdrawal as it sells stake

The bank is one of the oldest on the continent

Barclays 90 year stay in Africa is at an end after the bank announced it will sell 7 percent of its stake in Barclays Africa.

On 1 June 2017, shareholders were advised that Barclays had reduced its total interest in Barclays Africa to 23.4% from 50.1%, in addition to which 1.5% would be contributed by Barclays to a broad-based black economic empowerment (“BBBEE”) scheme in due course; and 7.0% would be taken up by the Public Investment Corporation SOC Limited (“PIC”) on a deferred completion, subject to receipt of all necessary regulatory approvals by the PIC, following which Barclays’ total interest in Barclays Africa would be approximately 15%.

 

On 4 September 2017, a transaction was effected in which the 1.5% stake in Barclays Africa was transferred from Barclays to an interim B-BBEE structure which was established by Barclays Africa, and accordingly Barclays’ total interest in Barclays Africa was reduced to 21.9%. The intention is that these shares will be held in the interim B-BBEE structure for a period before ultimately being applied towards a new Barclays Africa B-BBEE scheme.

The transfer of the 7.0% stake in Barclays Africa to the PIC is subject to regulatory approval. Pending receipt of such approvals, pursuant to an agreement between Barclays, the PIC and the local subsidiaries of two international financial institutions (the “Financial Institutions”), Barclays transferred (subject to settlement) the 7.0% stake in Barclays Africa to the Financial Institutions on 30 November 2017.

Following the contribution to the interim B-BBEE structure and the transfer to the Financial Institutions, Barclays’ total interest in Barclays Africa is at 14.9%. Barclays has indicated that this represents its desired long term share holding in Barclays Africa and that no further sales are planned at this time.

SOURCE - PULSE.NG posted by Campus94