LONDON (Alliance News) - Barclays PLC said on Wednesday it intends to sell a 12.2% stake in Johannesburg-listed Barclays Africa Group Ltd in a placing, in line its previously announced intention to sell down shares in the business.
The bank said it intends to sell 103.6 million shares through the placing, noting that investment manager The Public Investment Corp Ltd has confirmed its intention to be an anchor investor in the placing for up to 10.3 million shares, representing 1.2% of Barclays Africa's issued share capital. This is the maximum permitted without regulatory approvals.
Barclays said the shares are being offered to institutional investors by way of an accelerated bookbuild placing, which is open with immediate effect.
Barclays Bank PLC, acting through its investment bank, is the sole global coordinator and is acting as joint bookrunner, along with Citigroup Global Markets Ltd, JP Morgan Securities PLC and UBS Ltd.
Barclays said all the remaining shares it holds in Barclays Africa, including those held by its subsidiaries, not sold in the placing will be subject to a 90 day lock-up restriction from settlement.
Barclays added that the final number of shares to be placed and the placing price will be agreed at the close of the bookbuild process.
"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 Chief Executive Jes Staley.
"As we said at our first quarter results, we continue to explore opportunities to reduce our shareholding, including capital market and strategic options. Barclays Africa is an important partner, and we are working closely with local management, including planning for the operational separation of the two businesses in a way that will preserve value for shareholders in both the Barclays and Barclays Africa groups," Staley added.
Shares in Barclays were down 1.0% at 163.15 pence on Wednesday afternoon.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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Barclays (BARC)