Barclays Plc has started divestiture from its Africa operations following the sale of a 12.2 per cent stake in Barclays Africa Group (BAG). The 103.6 million ordinary shares were sold at about Sh840 each, at a total cost of £603 million (Sh884.1billion).
In a statement sent to newsrooms yesterday, the bank said the shares were sold through an accelerated book build placing as part of chief executive Jes Staley’s plan to overhaul Barclays Bank Plc. “This is an important first step as we seek to reduce our shareholding in Barclays Africa to a level that achieves accounting and regulatory deconsolidation,” said Staley.
The sale is expected to increase Barclays’ common equity Tier 1 ratio, a measure of financial strength, by about 10 basis points. “Upon settlement, the placing is expected to result in a pro-forma increase of approximately 10 basis points on the March 31, 2016 common equity tier 1 capital ratio,” said the statement.
The accelerated book build was oversubscribed and the shares went to well-known institutions, sources said. Hedge funds also received some of the shares, they said, but Barclays declined to comment. More than 125 investors were said to be interested in the shares.