Barclays has sold a 7.4 percent stake in Absa Group, it said on Thursday, raising $687million aimed at bolstering its capital levels.
Before the sale, Barclays had a 15 percent holding in the African lender.
“Shareholders are hereby advised that Barclays PLC (“Barclays”) has agreed to sell 7.44 percent (approximately 63 million) of the total ordinary shares of Absa Group through an accelerated bookbuild placing. Following the sale, Barclays will own 7.44% of the total issued ordinary shares of the Group,” Absa Group said in a notice published on the Johannesburg Stock Exchange (JSE).
According to Barclays, the placing is estimated to result in a pro forma increase of approximately 10 basis points to the Barclays group’s Common Equity Tier 1 ratio as at 31 December 2021 and a loss on sale of £43 million through the income statement.
“Barclays has reflected a gain of £121 million recorded through Other Comprehensive Income representing the increase in value of the shares in the period from 31 December 2021 to immediately prior to the Placing on 20 April 2022.”
Absa Group is a diversified financial services provider offering an integrated set of products in 12 countries in Africa and 2 international offices -in the United Kingdom and the United States of America.
In Africa, it has subsidiaries in Botswana, Zambia, Namibia, South Africa, Seychelles, Mauritius, Kenya, Ghana, Tanzania, Mozambique, Nigeria, and Uganda.
Barclays was the global bookrunner on its share sale and Absa, Citigroup, Banco Santander and Societe Generale were co-bookrunners.
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