Britain's scandal-hit Barclays bank is expected on Thursday to announce 20,000 job losses over the next three years in a major shake-up of its investment division, according to media reports.
JOHANNESBURG - British bank, Barclays has confirmed it will be selling its stake in Barclays Africa.
The UK bank has a 62.3 percent share in the African operation. Speculation has been rife for some time that it had wanted out.
CONFIRMED: Barclays Plc will be selling its 62.3% stake in Barclays Africa (Valued at around R80-billion)— Arabile Gumede (@ArabileG) March 1, 2016
Barclays on Tuesday said net losses more than doubled last year as it announced plans to gradually reduce its majority stake in the group&39;s African unit.
"We are today announcing our intention to sell down our 62.3-percent interest in our African business, BAGL, over the coming two to three years," Barclays said in a statement and revealed annual losses after tax of £394 million ($549 million, 505 million euros) for the bank as a whole.
Barclays Strategy Update: Simplification of the Group into two key divisions – Barclays UK and Barclays Corporate & International— Barclays Bank (@Barclays) March 1, 2016
Barclays announced in UK today: to exit from Africa in 3 years. Why? Has reduced its business to two sibling divisions: UK & International— Sure Kamhunga (@SureKamhunga) March 1, 2016
Barclays Bank CEO on cutting stake in Barclays Bank Africa: tells CNBC International "we will do it prudently over a safe period of time"— Sure Kamhunga (@SureKamhunga) March 1, 2016
The sale is one of the biggest disinvestments in South Africa since the 1980s.
On Monday morning, Barclays Africa shares took a knock on the JSE, losing as much as 6.8 percent.
Earlier on Tuesday, Absa Bank, Barclays Africa Group’s South African subsidiary, stuck to its script tweeting:
Barclays Africa is financially-independent, listed independently - we are not closing our banking operation in South Africa— Absa (@Absa) February 28, 2016
Twitter messages on Absa’s official account and website included: “Our future as Barclays Africa is bright and our ambition to be Africa’s leading bank remains unchanged.”
Reaction on Twitter has appeared as follows:
Barclays supported apartheid until 1987, 3 years for it to fall. PIC must come together with PostBank to buy the shares back.— Bo Mbindwane (@mbindwane) March 1, 2016
Hmmm… Barclays seems to be hedging its bets with African ops. Plan is to sell down the stake to under 50%. Not the best outcome.— Hilton Tarrant (@hiltontarrant) March 1, 2016
What will become of Maria Ramps CEO of Barclays Africa— Bonga Dlulane (@BongaDlulane) March 1, 2016
Barclays sale of Absa: An abject lesson in the cost of overpaying - and not - https://t.co/Owg7v75pIE— Alec Hogg (@alechogg) March 1, 2016
And Barclays Africa media/PR people in full swing. Bottom line is parent not happy with returns from SA operation.— Angelo Coppola (@AngeloCoppolaSA) March 1, 2016
At the rate Bidvest Group is buying into anything and everything, I&39;d like to see them buy Barclays stake in Africa. Would be interesting...— Prince Ngwenya (@LOTSMANGP) March 1, 2016
The economic instability in South Africa cause Barclays to sell it&39;s Africa business..who is to follow..— FillUpTheDome (@ChamileW) March 1, 2016
Even ex-Africa is Barclays still too confusing for investors to value? Price to Book Barc 0.47 / Lloyds 1.25— Guy Johnson (@GuyJohnsonTV) March 1, 2016
- Additional reporting: AFP / Africa News Agency
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