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Barclays announces sale of remaining shares in South Africa’s Absa
Global Banking & Finance Review®
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LONDON (Reuters) – Barclays will sell its remaining 7.4% stake in South African bank Absa, it said on Wednesday, completing its exit from a more than 90-year presence on the continent.
LONDON (Reuters) – Barclays will sell its remaining 7.4% stake in South African bank Absa, it said on Wednesday, completing its exit from a more than 90-year presence on the continent.
The British lender said it will sell the 63 million Absa shares to institutional investors in a process known as an accelerated bookbuilding, with the pricing yet to be set.
Barclays this year sold a similar sized stake for 526 million pounds ($611.84 million).
The British bank announced it would sell Absa in 2016, as part of a strategy revamp to focus more on the United States and Britain under then-Chief Executive Jes Staley.
($1 = 0.8597 pound)
(Reporting By Lawrence White; editing by Jonathan Oatis)
Equity refers to the ownership interest in a company, represented by shares of stock. It signifies the value of an owner's stake in the business after all liabilities have been deducted.
Institutional investors are organizations that invest large sums of money in securities, real estate, and other investment assets. Examples include pension funds, insurance companies, and mutual funds.
A stake in a company refers to the ownership interest held by an individual or entity, typically represented by shares. It indicates the proportion of the company owned and the rights associated with that ownership.
Accelerated bookbuilding is a method used by companies to quickly raise capital by selling shares to institutional investors. It involves soliciting bids from potential buyers over a short period.
Divestment is the process of selling off subsidiary business interests or investments. Companies may divest to focus on core operations or to raise capital.
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