Barclays Bank Plc has sold 103,592,49 ordinary shares in the capital of Barclays Africa (representing 12.2% of Barclays Africa‟s issued share capital) for 13.05 billion South African rand, or about $882 million or Ksh 88 Billion. The Bank however did not disclose the buyers but the New York Times reported that its Former CEO Bob Diamond and Ashish Thakar were interested.
Following completion of the Placing, Barclays will hold 424.7 million ordinary shares in the capital of Barclays Africa, representing approximately 50.1% of Barclays Africa‟s issued share capital. All of the remaining ordinary shares in Barclays Africa held by Barclays PLC or its subsidiaries (excluding Barclays Africa and its subsidiaries) not sold in the Placing will be subject to a 90 day lock-up restriction from settlement.
The proceeds of the Placing are payable in cash on usual settlement terms, and settlement of the Placing is expected to occur on a T+5 basis on 12 May 2016, subject to the satisfaction or waiver of certain customary conditions.
The British bank is cutting its 62.3 percent stake in the African business to free itself from regulatory and capital requirements that have dragged on its balance sheet.
Barclays Africa is listed on the Johannesburg Stock Exchange and holds majority stakes in banks in 10 countries, with offices in two others. The business’s biggest profit driver is South Africa.
Related;
Africa’s Youngest Billionaire says he is interested in Barclays Bank Kenya & Tanzania
“We are not for Sale” Declares Barclays Bank of Kenya
Barclays & National Bank Commerce of Tanzania to combine operations
Source; Barclay Bank, Reuters, Kenyan Wallstreet
