(Alliance News) - Barclays PLC on Thursday said it sold a stake in Absa Group Ltd worth GBP526 million, halving its stake in its former unit.
Barclays, which at one point had over a 60% holding in the Johannesburg-listed financial services firm, sold 63.1 million Absa shares through an accelerated bookbuild. The shares sold amounted to a 7.4% Absa stake, leaving Barclays with the remaining 7.4%.
Shares were sold at ZAR164.0 each, a 7.3% discount to their ZAR177.0 closing price on Wednesday.
Absa shares were down 4.4% at ZAR169.30 each on Thursday morning, one of Johannesburg's worst blue-chip performers.
Barclays netted ZAR10.34 billion from the share sale, around GBP526 million.
The FTSE 100 listing said the deal will lift its CET1 ratio, as at December 31, by 10 basis points.
It added it will record a GBP43 million loss on sale through the income statement, but a GBP121 million gain recorded through 'other comprehensive income'.
The London-listed firm said its own investment bank acted as global co-ordinator and bookrunner. Citigroup Global Markets Ltd, Banco Santander SA, Societe Generale SA, as well as Absa's own corporate & investment banking division acted as co-bookrunners.
Barclays said it will use the proceeds for "general corporate purposes".
Barclays formerly had a majority stake in Absa, formerly known as Barclays Africa Group Ltd, before selling much of it in 2017.
Barclays shares were 0.4% higher at 149.40 pence each in London on Thursday morning.
By Eric Cunha; ericcunha@alliancenews.com
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Barclays (BARC)