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Barclays reduces stake in Barclays Africa to 14.9%

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Barclays reduces stake in Barclays Africa to 14.9%

Barclays Plc said its total shareholding in Barclays Africa Group Ltd. will drop to about 14.9% for regulatory reporting purposes after it transferred a 7.0% stake in the South Africa-based bank to local subsidiaries of two international financial institutions Nov. 30 at 136.09 South African rand per share.

Specifically, Barclays' stake in Barclays Africa dropped to 126,145,303 ordinary shares from 185,487,851 ordinary shares, implying that the British banking group sold the 7.0% stake for approximately 8.08 billion rand ($593.6 million). Barclays Africa's shares closed at 157.78 rand on Nov. 30, according to S&P Global Market Intelligence data.

The financial institutions will hold 4.0% and 3.0% stakes in Barclays Africa. The transfer is subject to settlement, which Barclays said is expected to take place Dec. 5.

Then, subject to receipt of all necessary regulatory approvals, South Africa's Public Investment Corp. (SOC) Ltd. will ultimately take ownership of the combined 7.0% stake in Barclays Africa from the two financial institutions.

The stake reduction will increase Barclays' pro forma common equity Tier 1 ratio as of Sept. 30 by 12 basis points, the bank said, adding that it is not planning any further sales of its stake in Barclays Africa at this time.

Earlier in September, Barclays reduced its stake in Barclays Africa to 21.9% through the transfer of a 1.5% shareholding to an interim broad-based black economic empowerment scheme. That stake will be held in the interim scheme before ultimately being applied toward a new Barclays Africa black economic empowerment scheme.

As of Nov. 30, US$1 was equivalent to 13.60 South African rand.