Barclays confirms sale of 22 per cent stake in Africa business BAGL

William Turvill
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Barclays is aiming to reduce its stake in BAGL down to 28 per cent through the latest sale (Source: Getty)

Barclays has announced plans to sell a 22 per cent stake in its African division as the lender seeks to focus its efforts on higher-growth areas.

The bank said this afternoon that it has received regulatory approvals to further sell down its shareholding in Barclays Africa Group Limited (BAGL).

The lender said it was aiming to sell approximately 187m shares through an accelerated bookbuild placing.

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South Africa’s Public Investment Corporation will take approximately 59m of the shares, representing a seven per cent take in BAGL.

After announcing plans to sell down its stake in March 2016, Barclays sold 12.2 per cent of shares in May last year.

That placing took its holding from around 62 per cent to 50 per cent, and the next sale will reduce the stake to 28 per cent.

Sky News first reported that the sale could be worth $2bn (£1.6bn).

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Announcing today’s sell-down, Barclays chief executive Jes Staley said: “Regulatory approval for the separation of Barclays and Barclays Africa is an important step forward and allows us to move closer to our goal of reducing our shareholding in Barclays Africa to the point where we can achieve regulatory deconsolidation.

“It represents a key milestone in the execution of our strategy and the restructuring of Barclays.”

Barclays is itself, through its investment bank, acting as lead global coordinator on the deal, while Citigroup, Deutsche Bank and UBS are co-global coordinators. JP Morgan and Morgan Stanley are joint bookrunners, and BNP Paribas and Societe Generale are co-bookrunners.

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