JOHANNESBURG, Feb 25 (Reuters) - South Africa's governmentpension fund will vote in favour of Absa Group's planto buy the African operations of its British parent Barclays, Business Day newspaper reported on Monday.
Absa's minority shareholders, including the PublicInvestment Corporation (PIC) pension fund, are due to voteMonday on the bank's plan to issue $2 billion in stock toBarclays, in exchange for the British lender's Africanbusinesses.
While the deal is dilutive, it also offers Absa exposure,the PIC told Business Day.
"We will support the deal primarily because this providesAbsa with an immediate exposure to a higher growth trajectorymarket," the paper quoted an official for the pension fund assaying.
It did not give the name or title of the official.
The PIC is Absa's largest shareholder after Barclays,holding a little over 9 percent of the South African bank,according to Thomson Reuters data.
Barclays (BARC)
