Barclays Africa and Asba Group are discussing combining their operations. Asba, a subsidiary of Barclays, said that the two groups are currently in talks about combining the majority of the Barclays Africa operations with Asba, in order to fulfil shareholders plan to operate as one bank in Africa.
Barclays declined to comment on its impact on wealth operations when contacted by PBI.
Barclays PLC as majority shareholder
The banks said in a statement that the joining of the two institutions is expected to involve the combination of Barclays’ interests in Botswana, Ghana, Kenya, Tanzania, Uganda, Zambia and the Indian Ocean with Absa.
Barclays Bank would remain the majority shareholder of the combined African operations.In a statement, Absa also said that listings of Barclays subsidiaries in Kenya, on the Nairobi Securities Exchange, and in Botswana, on the Botswana Stock Exchange, would be maintained.
Only Barclays holdings in these listed subsidiaries would be included in the proposed combination.
However, the banks said that combination was at the discussion stage and had not yet been confirmed. The proposal is not expected to be completed until 2013.
Banks issue shares warning
Shareholders are currently being advised to be cautious when dealing in Absa’s shares as the proposed combination may have a material effect on the price of Absa’s shares, the banks warned.
Absa Group and Barclays Africa chief executive Maria Ramos said that the proposal “will provide a platform for further growth that we firmly believe will be to the benefit of our colleagues, our customers and clients, our shareholders and the communities in which we operate.”