Barclays raises $876 m after selling 12% of Africa group

Barclays Bank has raised $876 million from selling 12.2 percent stake of its African subsidiary.

The move forms part of plans by the bank to simplify its structure as well as shore up its balance sheet and generate higher shareholder returns.

It is also to allow the bank focus on its core markets in Britain and the United States, reports Reuters.

The sale of shares in Barclays Africa Group Limited, which is separately listed on the Johannesburg Stock Exchange, cuts the UK bank’s holding in the company to 50.1 percent, worth around $4.4 billion based on the placing price.

The shares, priced at a discount of 6.5 percent according to Reuters attracted “very high quality demand” and was oversubscribed with demands from domestic and international investors.

The sale shows investor confidence in Barclays Africa, drawing investor interest both locally and internationally. pic.twitter.com/ifC2B3aB0j

— Barclays Africa (@BarclaysAfrica) May 5, 2016

Although Barclays did not give any details about the new investors, reports suggest about 100 institutions bought the shares.

Of this figure, 40 percent are said to be based in South Africa, another 40 percent in the UK and 20 percent in the US.

South Africa’s state pension fund Public Investment Corporation (PIC) on Wednesday said it planned to acquire up to 10.3 million shares.

PIC, Africa’s largest fund manager, was already the second-biggest shareholder in Barclays Africa with a holding of about 6 percent.

Reuters, Agencies