Barclays weighs sale of 16% in African unit
The sale, complicated after two ratings agencies cut SA’s credit rating to junk in April, could still raise as much as $1.5bn, say insiders
Barclays plc is weighing the sale of a 16% stake in its Africa unit on the market once it gets regulatory approval to separate from the business, say people with knowledge of the plans. The sale could raise as much as $1.5bn based on the current share price of Barclays Africa Group, they said. The stock would probably be sold via an accelerated bookbuild offering. Barclays could decide to amend the size of the sale after receiving the go-ahead. "This story is speculative and wrong," a spokesman for the bank said. Barclays is seeking to sell down its remaining 50.1% stake in its African business to less than 20% in order to deconsolidate the unit from its accounts, releasing capital that can be invested elsewhere in the business. CEO Jes Staley decided to reduce the lender’s presence on the continent in favour of supporting a trimmed-down investment bank focused on London and New York. The latest phase of the sell-down was delayed after President Jacob Zuma fired finance minister Pra...
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