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Johannesburg – The sale of Barclays' shareholding is 'a historic moment', said Barclays Africa Group Limited [JSE:BGA] chief executive Maria Ramos.
Ramos was speaking at the bank’s headquarters in Johannesburg on Thursday, where she relayed details of the latest developments of UK-based Barclays’ sale of its stakeholding.
Ramos said the sale is "significant and exciting" and the "biggest local bookbuild (the) market has ever seen", almost twice the previous record. The bookbuild, which was oversubscribed, was the second largest in the Eastern Europe, Middle East and Africa region since 2007, said Ramos.
Following the sale, Barclays Africa Group is now a standalone, integrated Pan-African business, owned by both local and international diversified shareholders.
"This is a defining moment for Barclays Africa, a significant opportunity to determine our own destiny and make our own decisions on what is right for a standalone African business," she said.
Being a subsidiary of large international group is "hugely beneficial", said Ramos. "But it comes with huge friction costs." Being a standalone business will allow the bank to "think quite openly and creatively" about where it wants to be in future.
"It gives us an opportunity to look differently at our business and it is exciting for us to do that in this continent."
After markets closed on Wednesday Barclays, the parent company of ABSA, confirmed its intention to sell about 187 million ordinary shares or 22% of its stake in its African business unit.
Due to investor demand, the group increased this to 33.7% or R37.71m. This is 286 million shares, according to a note to shareholders issued on Thursday morning. Barclays' shareholding is now at 15%.
Shortly after the stock was trading at R139 per share.
READ: ALERT: Barclays to now sell 33.7% of Africa unit
The group had received the required regulatory approvals, including approval from the finance minister to reduce its shareholding to below 50%. The group plans to dilute its shareholding over a two- to three-year period.
This follows an initial placing undertaken in May 2016, where the group sold 12.2% (103.5 million shares) of its share capital in Barclays Africa Group.
The note further explained that the Public Investment Corporation (PIC) will take over 59 million shares (7%), bringing its total shareholding to a capped 14.9%. The PIC is yet to receive regulatory approval from certain African jurisdictions, such as Kenya, Mauritius and the Seychelles.
"It is the second largest shareholder after [Barclays] Plc," said Ramos.
The remaining ordinary shares will be held by Barclays or its subsidiaries. However 1.5% of the shares, equivalent to R1.85bn, will go towards the establishment of a black economic empowerment scheme.
Ramos said Barclays Africa Group will retain the Barclays brand for the next three years, and that the marketing team is researching ways to position the brand with a strong African focus.
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