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7  Investors Interested In Buying Barclays Stake In Africa

7  Investors Interested In Buying Barclays Stake In Africa

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British-owned banking group Barclays, which has operated in Africa for almost a century, announced on Tuesday it was planning to sell down its majority stake on the continent over a three-year span.

The bank which owns 62 percent of Barclays Africa, while South Africa’s Absa owns the rest, said its executives had reached a decision to sell some of its shares in the group that operates in several African countries including South Africa, Kenya and Botswana.

This news has put several banking institution and financial service providers both from the continent and other parts of the world on alert, with at least four investors showing interest in buying part of Barclays stake.

Here are five entities that have shown interest Barclays Africa stake:

This slideshow was first published on March 3, 2016. 

Sources: BDlive,  Reuters, Bloomberg, Forbes

Dan Matjila, chief executive officer South Africa’s Public Investment Corporation (Image: timeslive.co.za)
Dan Matjila, chief executive officer South Africa’s Public Investment Corporation (Image: timeslive.co.za)

South Africa’s Public Investment Corporation (PIC)

South Africa’s Public Investment Corporation (PIC), which manages about $96 billion in assets on behalf of the Government Employees Pension Fund, said in January it was keen to increase its stake in Barclays Africa if the group’s parent in London sells down. PIC, which owns 5.44 percent of Barclays Africa valued at about $318 million, sees this as an opportunity for South African investors to reclaim the bank’s assets from British control.

Image: thepeninsulaqatar.com
Image: thepeninsulaqatar.com

National Bank of Abu Dhabi

It is the leading bank in the Middle East. The bank was founded in 1968 and has its headquarters in the United Arab Emirates. National Bank of Abu Dhabi is spread in over 17 countries worldwide, with 60 branches. It is seen as a possible bidder for the whole of Barclays stake in Africa.

Ashish Thakkar and Bob Diamond http://www.titrespresse.com/article/atlas-mara-rachete-20-d-union-bank-of-nigeria-pour-270-millions-de-dollars?id=361859d14d9
Ashish Thakkar and Bob Diamond
(Image: titrespresse.com)

Atlas Mara Limited

It was founded by former Barclays Chief Executive, Bob Diamond, and Ashish Thakkar on November 28, 2013. On December 17, the same year, it listed on the London Stock Exchange through an Initial Public Offer that raised $325 million. Atlas Mara Limited has its headquarters in the British Virgin Islands. It is currently valued at $320 million. While its capital base might be too small to buy the whole of Barclays stake, it would be interest to buy some of it in specific African countries.

Qatar National Bank Chief Executive Ali Shareef Al Emadi (left) signing a FIFA deal (Image: sportsfeatures.com)
Qatar National Bank Chief Executive Ali Shareef Al Emadi (left) signing a FIFA deal (Image: sportsfeatures.com)

Qatar National Bank

It was founded on June 6, 1964, becoming the first locally -owned commercial bank in the country. It has its headquarters in Doha, the Qatar capital. Qatar National Bank operates in 27 countries globally and over 600 subsidiaries. Last year, the bank was worth $36.7 billion. It was also ranked 381 out of 1000 the World’s biggest Public Companies. While it is capable of buying the whole of Barclays stake in Africa, its strained relations with Egypt could prove a downside for the deal.

Image: naijaintellect.wordpress.com
Image: naijaintellect.wordpress.com

Chinese Banks

According to Reuters, some Chinese banks, which have shown interest in increasing their presence in Africa due to the close relation between their home government and nation on the continent, might also be interested in buying into Barclays. Already, Industrial and Commercial Bank of China has bought a 20 percent stake in South Africa’s standard Bank and others could follow this trend.

Photo: mg.co.za
Photo: mg.co.za

Falcon Private Bank – Switzerland

Switzerland-based Falcon Private Bank said it could consider buying Barclays stake in Africa as it expands into the continent. Last year, Falcon, which is owned by Abu Dhabi sovereign wealth fund International Petroleum Investment Company and has around $18 billion in assets under management, hired former Barclays chief executive of wealth and investment management and head of Switzerland operation, Simon Gaston, as the chief executive of Falcon’s private wealth business in London.

usafricatrade.org
usafricatrade.org

Equity Bank – Kenya

Equity Bank, Kenya’s largest bank by customers, has said it would be interested to buy Barclays stake in African. The bank’s chief executive officer, James Mwangi told Reuters that the huge banking infrastructure by Barclays Bank on the continent is a key motivation for Equity’s interest. The Kenyan bank, which targets low income earners and small business enterprises, has operations in Uganda, Tanzania, Rwanda, South Sudan and the Democratic Republic of Congo.