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| Mr Jenkins |
Eventually, Barclays Bank PLC and its subsidiary Absa Group Limited
(Absa) have announced their agreement to combine the majority of Barclays
Africa operations with Absa.
According to the statement released in Dar es Salaam , the proposed
combination accelerates Barclays ‘One Bank in Africa’ strategy and its goal to
become the ‘Go-To’ bank on the continent.
“This transaction will give us a platform from which we can further
grow our Africa business to the benefit of customers, colleagues, shareholders
and the communities in which we operate.”
The bank’s Chief Executive of Absa Group and Barclays Africa said the
move was a compelling and unique opportunity for them to further their
"One Bank in Africa" ambitions by combining with a leading
sub-Saharan African banking franchise.
He said they were tremendously excited by the opportunities for growth
across the continent and the geographically diversified earnings potential that
a combined business would deliver.
The combined business will create a leading pan-African financial
services business and a platform for further growth as it will serve
approximately 14.4 million customers through a network of more than 1,300
outlets and over 10,400 ATMs, employing more than 43,000 people across ten
countries which represent approximately 22.5% and 30.5% of Africa’s population
and GDP respectively.
According to the statement, among the key features of the proposed
combination are, Barclays stake in Absa will increase from 55.5% to 62.3% and
that Barclays Africa Limited will hold, at the effective date of the proposed
combination, all or a significant majority of the Portfolio, comprising
Barclays ownership interests in banking operations in Botswana (67.8%), Ghana
(100%), Kenya (68.5%), Mauritius (100%), Seychelles (99.8%), Tanzania (100%),
Uganda (100%) and Zambia (100%), as well as the Barclays Africa Regional Office
in Johannesburg (100%).
“Absa will continue to own 100% of Absa Bank Limited, 95.8% of Barclays
Bank of Mozambique and 55% of the National Bank of Commerce (NBC) in Tanzania.
The proposed combination in respect of Tanzania will only include Barclays Bank
Tanzania. Absa’s majority interest in NBC will be maintained.
“Barclays Bank Tanzania and NBC will continue to operate as two
separate and independent entities, with separate Boards and management teams.
Both will continue to use their existing brands reflecting the strength of the
brands and their operational independence,” reads part of the statement.
Another key feature is that a condition precedent to the proposed
combination that, subject to the applicable regulatory approvals, at least the
operations in Botswana, Ghana, Kenya and Mauritius, as well as the Barclays
Africa Regional Office, are transferred to Barclays Africa Limited by the first
closing date.
The remaining companies in the Portfolio that have not transferred to
Barclays Africa Limited by such closing date will become the subject of
subsequent closings. The proposed combination follows on from the steps taken
by Absa and Barclays in 2011 to integrate their African businesses from an
operational and management point of view.
This initially involved consolidating the regional offices for Absa
Africa and Barclays Africa in Johannesburg and establishing a combined Africa
management oversight team, as well as introducing a global product strategy
across the continent.
“The combination will rationally unlocks access to pan-African growth
for Absa shareholders through exposure to a sub-Saharan African financial
services group across eight countries; will also provide benefits to the
individual African operations through leveraging strong product capabilities
across the expanded group, as well as facilitating the sharing of expertise and
development of skills across the businesses,” said the statement.
Source: The Daily News, www.dailynews.co.tz
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