Barclays Kenya issues notice to NSE over merger of Africa operations
What you need to know:
The proposed merger will affect Barclays’ operations in Botswana, Ghana, Kenya, Tanzania, Uganda, Zambia and the Indian Ocean with Absa. Barclays Bank PLC will remain the majority shareholder of the combined African operations.
However, the merger is unlikely to affect the local listing of Barclays bank Kenya.
Barclays Bank Kenya on Tuesday filed a cautionary notice with the Nairobi Securities Exchange (NSE) over a planned merger of Barclays UK’s Africa operations with those of Absa Group, its subsidiary.
The move, which is subject to regulatory and shareholder approvals in the UK and in a number of African countries where Barclays and Absa have offices is expected to be completed by next year. Absa is 56 per cent owned by Barclays.
“Shareholders are advised that, in line with their strategy to operate as One Bank in Africa, Barclays Bank PLC and its subsidiary Absa Group Limited are engaged in discussions about combining the majority of the Barclays Africa operations with Absa,” Barclays Bank of Kenya Managing Director Adan Mohamed said in a statement.
The proposed merger will affect Barclays’ operations in Botswana, Ghana, Kenya, Tanzania, Uganda, Zambia and the Indian Ocean with Absa. Barclays Bank PLC will remain the majority shareholder of the combined African operations.
However, the merger is unlikely to affect the local listing of Barclays bank Kenya.
“The listing of BBK on the NSE would be maintained. Only Barclays’ holdings in BBK would be included in the proposed combination,” Mr Mohamed said.
The proposed combination would be subject to, among other things, the approval of the Boards of Barclays and Absa (the latter on the recommendation of the independent members of the Absa Board), as well as Absa shareholders and regulators in the relevant jurisdictions.
Maria Ramos, Chief Executive of Absa Group and Barclays Africa, said: “This proposed combination of the majority of the Barclays Africa businesses with Absa is the next logical step in delivering our “One Africa” strategy, which Barclays PLC announced last year. We have already consolidated the regional offices for Absa Africa and Barclays Africa, as well as introduced a global product strategy for banking across the continent. This proposed combination of the businesses will mirror the managerial and operational structure we have already put in place” said Ramos.
