BARCLAYS Plc yesterday announced that it has agreed with its subsidiary Absa Group Ltd to combine majority of Barclays Africa operations for a consideration of around 129,54 million Absa ordinary shares, representing a value of 18,33 billion South African Rand or £1,3 billion.
Report by rttnews.com
The deal will increase the British lender’s stake in Absa to 62,3% from 55,5%.
Antony Jenkins, Barclays chief executive stated: “Bringing together Barclays Africa with Absa is an important step in furthering our ‘One Bank in Africa’ strategy and the goal to become the ‘Go-To’ bank across the continent.”
Absa Group Ltd, the holding company of Absa Bank, is one of South Africa’s largest financial services groups offering banking, insurance and wealth management products and services.
Under the proposed transaction, Absa Group will acquire 100% of the Barclays Africa Ltd, shares in issue. Absa will continue to own 100% of Absa Bank Ltd, 95,8% of Barclays Bank of Mozambique and 55% of the National Bank of Commerce in Tanzania.
The scope of the proposed transaction excludes Barclays operations in Egypt and Zimbabwe.
Barclays noted that the independent directors of the Absa Board have unanimously approved the deal.
- Chamisa under fire over US$120K donation
- Mavhunga puts DeMbare into Chibuku quarterfinals
- Pension funds bet on Cabora Bassa oilfields
- Councils defy govt fire tender directive
Keep Reading
The proposed transaction is expected to be completed in the first half of 2013.
Following the transaction, Absa Group Ltd will be renamed Barclays Africa Group Ltd.
The composition of the Board of Absa Group will be reconstituted accordingly, the company stated.
Maria Ramos, chief executive of Absa Group and Barclays Africa, said: “This is a compelling and unique opportunity for us to further our ‘One Bank in Africa’ ambitions by combining with a leading sub-Saharan African banking franchise.”
According to Barclays, the listings of Barclays Bank Kenya Ltd on the Nairobi Securities Exchange and Barclays Bank Botswana Ltd on the Botswana Stock Exchange will continue to be maintained, as only the shares held by Barclays are transferred in the deal.
Goldman Sachs International is acting as financial adviser to Barclays.
