PIC interested in raising Barclays Africa stake

Jan 25 2016 15:50
Janice Kew and Renee Bonorchis

Johannesburg - The Public Investment Corporation, manager of the bulk of the South African government’s pension fund money, said it would be interested in increasing its stake in Barclays Africa Group [JSE:BGA].

“The fact that Barclays Africa has a strong platform across the continent means that it would be a good partner for the PIC as it rolls-out its strategy in Africa,” said Dan Matjila, the Pretoria-based chief executive officer of Africa’s biggest money manager. There is no such deal being considered at the moment, he said.

UK-based Barclays has controlled the South African bank since 2005 and holds a 62.3% stake. The Financial Times reported in December that new CEO Jes Staley may reduce Barclays’ African presence. The PIC, with stakes in most of South Africa’s biggest companies, along with investments in Togo-based Ecobank Transnational and Dangote Cement of Nigeria, already owns about 6% of Barclays Africa.

“We are fairly satisfied with how the company is run,” Matjila said, declining to comment on what size of stake the PIC would like to have in the bank.

Barclays Africa has declined 9.5% since the Financial Times published its story. That’s more than the 6.5% drop in the seven-member FTSE/JSE Africa Banks Index.

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