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Barclays PLC said on Thursday it expects to book a loss of £31 million following the sale of its remaining stake in Absa Group Ltd.
The London-based bank agreed to sell its remaining shareholding of 63 million shares, or 7.4%, in Absa at R 169.0 per share through an accelerated bookbuild placing. This price represents discount of 5.1% to the close of R 178.02 on Wednesday.
In late-morning session, shares in Absa were 2.0% lower at R 174.35 in Johannesburg.
Following this latest sale, Barclays will no longer own any shares of Absa.
Barclays said on Thursday the sale raised aggregate gross proceeds of about R 10.66 billion.
The placing is expected to result in a pro forma increase of about 4 basis points to Barclays's CET1 ratio as at June 30 and a loss on sale of £31 million through the income statement.
CET1 ratio is a key measure that assesses a bank's ability to withstand financial distress. It stands for Common Equity Tier 1.
Barclays has reflected a gain of £77 million recorded through other comprehensive income, representing the increase in value of the shares in the period from June 30 to immediately prior to the completion of the placing on August 31.
In April, Barclays sold 63.1 million Absa shares. In 2005, Barclays bought a 54% stake in the Johannesburg-listed lender.
Absa changed its name to Barclays Africa Group Ltd from 2013 to 2018. Barclays disposed of much of its holding in 2017, reverting the name change.
Barclays shares were 1.1% lower at 162.66 pence each in London on Thursday morning.
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