Barclays Africa issues cautionary after UK parent ‘evaluates options’
by Staff Writer,
2016-02-29 08:28:11.0
BARCLAYS Africa on Monday issued a cautionary following an announcement from Barclays plc regarding a potential sale of its shareholding in Barclays Africa Group.
UK-based Barclays plc, which owns 62.3% of Barclays Africa, on Sunday said it continued to evaluate its strategic options in relation to its shareholding in Barclays Africa and expected to update the market at the time of its 2015 full-year results announcement on March 1.
SA’s Public Investment Corporation (PIC), which manages about R1.5-trillion in assets on behalf of the Government Employees Pension Fund (GEPF), told BDlive in January that it was keen to increase its 5.4% stake in Barclays Africa if Barclays wanted to sell down its holding.
A Barclays sell-down is seen as an opportunity for domestic investors to reclaim the banking asset from British control. The PIC is the biggest South African investor in Barclays Africa, with its stake valued at about R6.5bn.
Investment bankers said there were no obvious strategic buyers for the African business.
The value of the stake has fallen in recent months, making the option of steadily selling the stake to institutional investors less attractive.
Barclays Africa Group CE Maria Ramos said the company remained committed to Africa.
"With an independent board and a separate listing on the JSE, we are deeply rooted in Africa and remain firmly in control of our future.
"We continue to be optimistic about our prospects in Africa, where we have a strong franchise with assets of over R1-trillion. We are deeply committed to the success of our continent. Our destiny is in Africa," Ms Ramos said.
Maria Ramos. Picture: MARTIN RHODES
BARCLAYS Africa on Monday issued a cautionary following an announcement from Barclays plc regarding a potential sale of its shareholding in Barclays Africa Group.
UK-based Barclays plc, which owns 62.3% of Barclays Africa, on Sunday said it continued to evaluate its strategic options in relation to its shareholding in Barclays Africa and expected to update the market at the time of its 2015 full-year results announcement on March 1.
SA’s Public Investment Corporation (PIC), which manages about R1.5-trillion in assets on behalf of the Government Employees Pension Fund (GEPF), told BDlive in January that it was keen to increase its 5.4% stake in Barclays Africa if Barclays wanted to sell down its holding.
A Barclays sell-down is seen as an opportunity for domestic investors to reclaim the banking asset from British control. The PIC is the biggest South African investor in Barclays Africa, with its stake valued at about R6.5bn.
Investment bankers said there were no obvious strategic buyers for the African business.
The value of the stake has fallen in recent months, making the option of steadily selling the stake to institutional investors less attractive.
Barclays Africa Group CE Maria Ramos said the company remained committed to Africa.
"With an independent board and a separate listing on the JSE, we are deeply rooted in Africa and remain firmly in control of our future.
"We continue to be optimistic about our prospects in Africa, where we have a strong franchise with assets of over R1-trillion. We are deeply committed to the success of our continent. Our destiny is in Africa," Ms Ramos said.
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