Barclays Plc slashes 33.7 per cent stake in Africa unit

Barclays Bank branch in central London. PHOTO | TOBY MELVILLE | REUTERS 

By AFP

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Summary

• Barclays, which has decided to focus on its two core markets of Britain and the United States, now holds a stake of just 16.4 per cent in the Africa unit.
• Barclays Africa, which is listed on the Johannesburg stock exchange and is present in around 10 countries, has declined in value in recent months.

British banking giant Barclays Plc said Thursday it has further reduced its stake in its South African operations as part of a global strategic re-think unveiled last year.

Barclays said in a statement that it had placed a stake of 33.7 per cent in Barclays Africa with institutional investors, raising some £2.224 billion (about Sh296 billion).

The UK-based lender, which has decided to focus on its two core markets of Britain and the United States, now holds a stake of just 16.4 per cent in the unit.

It does want to pull out completely, however, and will hold on to a stake of 15 per cent, it said.

Barclays Africa, which is listed on the Johannesburg stock exchange and is present in around 10 countries, has declined in value in recent months, against the backdrop of the political crisis in South Africa.

The British bank was compelled to make a writedown of around £900 million (about Sh119.76 billion) on the unit in its first-quarter accounts.

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Key CBK exchange rate used: £1 = Sh133.0617