Barclays set to sell $2bn stake in Africa business
- Author: Zachary Reyes May 31, 2017,
May 31, 2017, 22:32
Barclays plans to sell a £1.5 billion slice of its Africa banking arm as it continues to overhaul the business in order to focus on its United Kingdom and USA operations. Barclays is expected to announce next month that it will close its "noncore" division, which houses the bank's unwanted assets, a move which the USA executive says shows that the turnaround at Barclays is almost complete. On 5 May 2016, Barclays PLC sold 103.6 million shares in Barclays Africa, reducing its shareholding to 50.1%.
Barclays (Swiss: BARC.SW - news) will sell shares worth 1.5 billion pounds ($1.94 billion) in Barclays Africa Group, the bank said on Wednesday, marking another stage in its exit from the continent to focus more on the United States and Britain.
Barclays is looking to hold on to a 15% stake in the African bank.
It is understood the share sale is being handled by investment bankers at Barclays, Citi and Deutsche Bank.
Sources said the deal could be announced as soon as Wednesday evening, following the close of stock markets in London and Johannesburg, where BAGL is listed.
BAGL has a presence in countries including Ghana, Kenya and Uganda and forms part of a presence that Barclays has had in Africa since 1925.
Barclays has a 50% stake in its Africa division and plans to reduce its holding to 28%, raising £1.6bn in the process.
If it goes ahead, the transaction could raise up to $2bn for Barclays, capital which is likely to be redeployed elsewhere in the group.