rumours unfounded
Absa won’t become a state bank
Absa becomes SA-controlled business for first time since 2004, but Barclays Plc and PIC will remain long-term investors
Last week’s bookbuild, in which Barclays Plc sold 286m shares in its African subsidiary, will ensure that Barclays Africa is a widely held financial institution with no controlling shareholder. Speculation that the Public Investment Corp (PIC) would use its stake as a building block of a new state bank were incorrect. Even the process of building up a black economic empowerment consortium will be controlled from the centre, as Barclays Plc is donating R1.7bn of shares to a suitably friendly outfit. For the first time since 2004, Absa Bank (and its holding company, for now called Barclays Africa) will be an SA-controlled business. More than a year after Barclays Plc sold its 62% holding down to 50%, more than double the number of shares were made available in the second bookbuild. Barclays Africa CEO Maria Ramos says more than half of these shares were allocated to local investors, and two-thirds of these to long-only institutional investors, such as pension funds and unit trusts. Th...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.