Barclays completes exit from Africa after nearly a century

Barclays completed its exit from Africa after nearly a century on the continent, with Absa sales of £538m. increasing

  • The British lender bought South Africa-based Absa in 2005
  • But it announced its plans to sell the business in 2016 under then-boss Staley.

Barclays has completed its exit from Africa after selling its remaining 7.4 percent stake in its South Africa-based subsidiary Absa.

The British lender told investors on Thursday it has raised gross sales proceeds of around £538 million by holding 63 million Absa shares at 169 rand (£8.48) per piece, making up for a loss on the sale of £538 million.

It marks both the end of the 2005 investment and Barkley’s 97-year presence on the African continent.

Barclays announced plans to sell Absa in 2016 under then-boss Jess Staley

Barclays announced plans to sell Absa in 2016 under then-boss Jess Staley

Shares of Barclays were down 1.5 per cent at 162.08p in early trade, making a year-on-year loss of 17.3 per cent.

The banking giant’s intention to leave Africa was announced in 2016 under the leadership of then-boss Jess Staley, who sought to ease business and focus on its key markets, the US and the UK.

A year later, the firm sold a larger-than-market stake in ABSA, reducing its stake to 15 percent on strong demand.

Staley left the lender in November 2021 after the Financial Conduct Authority and the Prudential Regulation Authority launched an investigation into her relationship with disgraced deceased financier and sex offender Jeffrey Epstein.

Staley has been resisting the investigation by city regulators, but Barclays earlier this year halted long-term bonus and share payments that resulted in the payments he had to pay.

Originally known as the Amalgamated Banks of South Africa, Absa offers personal and business banking, credit cards, corporate and investment banking, wealth and investment management, as well as bank assurance.

With offices across Africa as well as in London and New York, the 2005 takeover of the bank by Barclays was later criticized by South African Reserve Bank Governor Tito Mboveni.

ABSA was later merged into Barclays Africa Limited in 2013.

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *