DIVORCE SETTLEMENT WORTH R12.8BN
Barclays Africa ‘divorce settlement’ is not a sale deal, says Maria Ramos
The British bank’s sell-down of its majority stake in its African subsidiary is still some way off
Although Barclays Africa has reached an agreement with parent Barclays plc about the costs of separating the two companies, the British bank’s sell-down of its majority stake in its African subsidiary is still some way off. The British bank has agreed to pay a "divorce settlement" of £765m, or R12.8bn at the exchange rate at the end of 2016, to fund Barclays Africa’s investments in new technology, rebranding and other separation costs. Barclays Africa CEO Maria Ramos said this did not necessarily mean a deal to sell the bank had been struck. "The two things are not related," she said after the release of Barclays Africa’s results for the year to December last week. "[The separation agreement] is to get the approvals to reduce the shareholding…. To get it, the regulator will want to understand how the separation will happen; the component parts of it, the costs …" Ramos had said earlier Barclays plc’s sell-down, which it announced at the presentation of its year-end results in March ...
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