Barclays looks to sell $740m stake in Absa

Barclays Plc is selling 7.4% of Absa Group Ltd, a stake in its former African unit valued at as much as $740 million (R11.12 billion*).

The firm is placing about 63 million shares to institutional shareholders via an accelerated bookbuild placing, according to a statement Wednesday. Barclays gathered enough investor orders to cover the sale within minutes of opening the book, terms seen by Bloomberg showed.

The sale represents about half of Barclays’ 15% holding in the African lender. The British bank, which has had a presence in Africa for more than 100 years, has been reducing its stake in Johannesburg-based Absa in recent years. It sold off much of its controlling stake in the group – then-Barclays Africa Group – in 2017.

Barclays, Absa, Citigroup Inc., Banco Santander SA and Societe Generale SA are arranging the sale.

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$1 = R15.03