The transaction comes after an announcement by Barclays PLC in 2016 that it was planning to exit the African continent and was looking for a buyer
The Barclays Africa Group (BAG) will keep the Barclays brand name for three years even after an agreement was reached to separate with the parent bank, Barclays PLC.
Yesterday, Barclays Africa Group announced that it had agreed terms with Barclays PLC to separate the two businesses.
“The agreement is expected to unlock opportunities for Barclays Africa as an independent pan-African Bank,” a statement from Barclays Africa, reads in part.
Barclays PLC owned the Barclays Africa Group, but now that shareholding is expected to reduce to below 50 per cent once the transaction is approved.
The transaction comes after an announcement by Barclays PLC in 2016 that it was planning to exit the African continent and was looking for a buyer.
That informs the process of separation from the Barclays Africa Group.
“Following the reduction of Barclays PLC’s shareholding below the 50 per cent mark, Barclays Africa will be able to continue using the Barclays brand and its operations outside of South Africa for three years,” the statement adds.
The three years is the transition process the Barclays Africa Group has given itself to have completely separated from Barclays PLC, with the possibility of bringing new investors on board.
All Barclays subsidiaries in Africa are owned by the Barclays Africa Group (BAG), meaning that they will still remain under that ownership.
“Barclays Africa Group is not selling any of its operation on the African continent,” said Ms Maria Ramos, the CEO Barclays Africa during a teleconference call with journalists in Africa yesterday. BAG is headquartered in South Africa.
According to Mr Rakesh Jha, the managing director Barclays Uganda, this transaction will not affect the plans of the Uganda subsidiary.
“We don’t see our short to medium terms strategy and plans changes as a result of this transaction. Nothing will change in terms of operations as Barclays Uganda,” he told reporters yesterday. He also said the bank in Uganda is adequately capitalised to continue operations. According to BAG, they they have strong liquidity levels and are independently funded.