Barclays has gone ahead with the sale of another 22 per cent of its Africa banking division as part of a continuing restructuring programme to concentrate on its UK and American banking operations.The sale, which should raise £1.5 billion, follows approval from South African government authorities for Barclays to reduce its share in Barclays Africa Group (BAGL) from 50 per cent to around 28 per cent. The company's eventual aim is reduce its share in BAGL to 15 per cent.In a statement, Barclays said the sale would result in it disposing of 187 million ordinary shares in BAGL - a move described as "a key milestone" in the bank's restructuring programme by chief executive Jes Staley.He added: "Regulatory approval for the separation of Barclays and Barclays Africa is an important step forward and allows us to move closer to our goal of reducing our shareholding in Barclays Africa to the point where we can achieve regulatory deconsolidation. It represents a key milestone in the execution of our strategy and the restructuring of Barclays."BAGL, which includes the South African branch network Absa, was created in 2013 when 12 banks across the continent were brought together. It has about 12 million customers across 12 African nations.Last year, Barclays began reducing its holding - then standing at almost two-thirds - in BAGL as well selling its wealth and investment management firm based in Singapore and Hong Kong, and selling its risk analytics and index unit to Bloomberg as it focused attention on the US and UK."We still see this deal as utterly transformational for Barclays’ capital position, which in turn offers specific opportunities for earnings enhancement," Ian Gordon, an analyst at Investec, wrote in a note.The shares went on sale overnight on Wednesday and were multiple-times subscribed. They were sold to a mix of existing and new investors, both locally and internationally.“The completion of this transaction demonstrates an exceptionally healthy investor appetite for Barclays Africa and our strategy of becoming a leading standalone financial services group in Africa,” said Maria Ramos, BAGL chief executive.“This is a very exciting time for Barclays Africa. There is an opportunity for increased African ownership of our business through a planned staff share scheme as well as a broad-based black empowerment scheme that will contribute to the growth of an entrepreneurial culture."

©2024 Re:locate magazine, published by Profile Locations, Spray Hill, Hastings Road, Lamberhurst, Kent TN3 8JB. All rights reserved. This publication (or any part thereof) may not be reproduced in any form without the prior written permission of Profile Locations. Profile Locations accepts no liability for the accuracy of the contents or any opinions expressed herein.