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Barclays Cuts Holding In Absa Bank By Selling 7.4 % Stake

Banking major Barclays plc (BARC,BCS) on Thursday said that its unit Barclays Principal Investments Limited, has agreed to sell 63,072,651 shares in the capital of South Africa-based Absa Bank Ltd (ABSP), representing 7.4 percent of the bank's issued share capital. The sale reduces Barclays stake in the latter by half.

The net proceeds will be used for general corporate purposes . After the stake sale, Barclays would be holding 63 million ordinary shares in Absa, representing approximately 7.4 percent of Absa's issued share capital.

The sale, at a price of ZAR 164.0 per share through a placement raises about 526 million pounds.   The sale would add almost 10 basis points to the Barclays group's CET1 ratio as at 31 December 2021.

Barclays has recognized a loss on sale of 43 million pounds through the income statement. It has also recorded a gain of 121 million pounds for the period from 31 December 2021 to immediately prior to the placing on 20 April 2022 through Other Comprehensive Income.


Barclays Bank PLC, acting through Barclays Investment Bank is acting as global coordinator and bookrunner. Citigroup Global Markets Limited, Absa Bank Limited, acting through its Corporate and Investment Banking division, Banco Santander, S.A. and Société Générale are acting as Co-Bookrunners.

Shares of Barclays closed Wednesday's trading at $7.85, up $0.06 or 0.77 percent from the previous close.

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