Barclays sells a £2.2bn stake in its Africa business
Barclays Bank has relieved a £2.2bn stake of its Africa business after increasing the number of its shares on the London Stock Exchange.
Earlier this year Barclays said it intended to reduce its shareholding in the Barclays Africa Group to a level which would allow the bank to de-consolidate the Africa business from both a regulatory and accounting perspective.
Yesterday, Barclays received the necessary regulatory approvals it submitted in February to sell down to below a 50 percent holding in the Africa business.
The bank said it increased the number of ordinary shares which have been placed in the market today, from 187m to 286m, after it experienced “strong investor demand”.
As a result of the placing, Barclays said its tangible net asset value will have increased by £0.2bn.
The remaining ordinary shares held by Barclays in the Africa business, which aren’t sold in the placing, will be subject to a lock-up restriction which applies until 90 days after settlement.
During this period, the lock-up restriction may be waived with the consent of the global coordinators.
However, 1.5 percent of the ordinary shares held by Barclays, not sold in the placing, will be excluded from the lock-up restriction and will instead contribute towards the establishment of a black economic empowerment scheme.
The South African government set up this scheme to redress the inequalities of Apartheid by giving certain previously disadvantaged groups of South African citizens economic privileges previously not available to them under white rule.