Johannesburg – Finance Minister Pravin Gordhan
has approved the proposed reorganisation of the African operations of Barclays and the Absa Group [JSE:ASA].
The application was considered by the minister in terms of section 37 and 52 of the Banks Act‚ 1990‚ and the Currency and Exchanges Act of 1933.
This approval follows a previous one in 2005 for Barclays to acquire a majority shareholding in Absa. This was the first phase of its restructuring‚ which was to be followed by this second phase being the current transaction for Barclays to transfer its African operations to Absa.
Gordhan said the transaction was a testimony to South Africa’s attractiveness as a hub for companies to expand into Africa‚ and Barclays was one of many large international companies that had chosen to base their African operations in South Africa. The proposed transaction would bring benefits to the country‚ employees and shareholders of the group.
“The transaction has been approved on recommendation of the South African Reserve Bank. It has been approved on condition that Barclays Africa‚ which will house Barclays’ African assets‚ be incorporated in South Africa.
“Barclays Africa may in future apply for a Holding Company dispensation which was announced by the minister of finance in the 2013 Budget. The Holding Company regime seeks to provide incentives for South African corporates to expand from a domestic base‚” the Treasury said.
Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.