Qataris make millions from Barclays sale
GULF state vehicle Qatar Holding yesterday offloaded half of its share warrants in Barclays, netting the bank’s biggest shareholder a fast profit of over £600m.
Qatari investors, who still hold a direct shareholding of over seven per cent in Barclays, were issued with the warrants last November at a subscription price of 197.775p, as part of a controversial move by the bank to raise £5.8bn from its Gulf investors.
Qatar Holding exchanged half of the warrants yesterday for 379.2m shares to be sold at the current price, netting it a profit of over £600m.
Credit Suisse was appointed as bookrunner for the placing, with Barclays Capital, headed up by Bob Diamond, acting as lead manager for the transaction.
Ahmad Al-Sayed, chief executive and managing director of Qatar Holding, said: “The decision to exercise the warrants and dispose of the resultant shares forms part of Qatar Holding’s portfolio management programme and does not impact on our current intention to remain a long term strategic shareholder in Barclays.”
He added that the transaction would net Barclays proceeds of approximately £750m.
Analysts said the move by the Qataris represented merely a desire to realise a chunk of profit off their investment rather than a loss of confidence in the bank.
Shore Capital analyst Danny Clarke, said: “I think it is just opportunistic as the warrants became available to be converted. It is a chance for the Qataris to take some profit after the strong rally in the price over recent months.”
Barclays shares closed yesterday at 363.75p, having lost 4.79 per cent over the course of the day. The group’s shares have more than doubled in value since the Gulf fundraising.
QATAR HOLDING
CHIEF EXECUTIVE AND MANAGING DIRECTOR
AHMAD AL-SAYED
THE Qatar Investment Authority’s stakeholding in British institutions Barclays and J Sainsbury is symbolic of moves by active investors from the Middle Eastern country who want their share of the City’s most high profile assets.
Qatar Holding, the investment arm of Qatar Investment Authority, is now also the largest shareholder in Canary Wharf parent group Songbird, after providing an essential £350m lifeline for the Docklands site.
And Qatari Diar Real Estate Investment company has provided £2bn funding for London’s Shard skyscraper development and the controversial Chelsea Barracks development.
Knight Frank partner Nick Braybrook said: “The Qataris are second generation investors in London and they have been very active.”
Due to rising oil prices and weak sterling, experts believe Qatari investors will remain on the offensive.