British lender Barclays Plc completes sale of seven per cent stake in Barclays Africa

British lender Barclays Plc has completed the sale of a seven per cent stake in Barclays Africa in what is expected to be the last of a series of share sales.

The London-based bank has sold the shares to undisclosed existing and new investors, bringing its stake in the Johannesburg securities exchange-listed lender to 14.8 per cent from an initial holding of 62.3 per cent.

Barclays Bank Africa has a subsidiary in Kenya.

“The share sale is part of a move for Barclays Plc to relinquish its holdings in Africa as it prepares to move out entirely,” financial services firm Cyton said yesterday in its weekly brief to investors.

The British bank first announced in March last year that it would sell most of its then 62 per cent stake in Barclays Africa over two to three years, ending more than 90 years of its association with the African continent.

Several unnamed bidders are reported to be in negotiations with Barclays Plc over the acquisition.

Raised concerns

Barclays Bank Kenya (BBK) was until five years ago the biggest bank in Kenya and is the second most important subsidiary to Barclays Plc after the South African business in terms of profits and assets.

In May this year, Barclays Plc started its exit plan by selling 12.2 per cent stake in Barclays Kenya in a transaction estimated to be worth Sh90 billion to an unnamed South African public pension fund.

Central Bank of Kenya (CBK) Governor Patrick Njoroge has insisted that his office must be involved in Barclays Plc’s exit from its operations in Kenya.

He raised concerns about the continued part sale of the African business by the British parent company, saying it had the possibility of the buyer stripping the business of its assets before going away.

“It is a legitimate concern that the buyer could only be interested in stripping the business of the assets,” said Dr Njoroge. He has also maintained that his office should vet any new entrants in Kenya’s banking sector.