Bar­clays speeds up African di­vest­ment

The Star Early Edition - - COMPANIES - ANA

BAR­CLAYS yesteray in­creased the num­ber of shares it will sell in Bar­clays Africa Group from £1.5 bil­lion to £2.2bn, or ap­prox­i­mately R37bn, due to strong in­vestor de­mand.

This comes af­ter Bar­clays an­nounced on Wed­nes­day that it will sell 187 mil­lion or­di­nary shares in Bar­clays Africa, which rep­re­sents ap­prox­i­mately 22 per­cent of Bar­clays Africa’s is­sued share cap­i­tal.

With the in­crease in the size of the plac­ing of shares on the mar­ket, Bar­clays will now sell a fur­ther 285 mil­lion or­di­nary shares to mark an­other stage in its exit from the con­ti­nent to fo­cus more on the US and UK.

Bar­clays said it would sell the shares to large in­vestors, in­clud­ing South Africa’s Pub­lic In­vest­ment Cor­po­ra­tion, in its sec­ond such sale since the Bri­tish bank an­nounced in early 2016 its in­ten­tion to off­load most of its African busi­ness.

Bar­clays will now hold 139 mil­lion or­di­nary shares in Bar­clays Africa, re­duc­ing its stake to 16.4 per­cent of Bar­clays Africa’s is­sued share cap­i­tal. Of these, 12.7 mil­lion or­di­nary shares will be contributed to a black eco­nomic em­pow­er­ment scheme in due course, leav­ing a resid­ual hold­ing of ap­prox­i­mately 15 per­cent.

Bar­clays an­nounced in March last year that it in­tended to re­duce its share­hold­ing in Bar­clays Africa over a pe­riod of two to three years, first sell­ing 103.6 mil­lion shares and re­duc­ing its share­hold­ing to 50.1 per­cent.

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