7 February 2013

Kenya: CMA Okays Barclays Share Transfer

The Capital Markets Authority (CMA) has granted approval to Barclays Bank of Kenya Limited for the transfer of Sh3.72 billion of its shares held by Barclays Bank Plc to Barclays Africa Limited, following the reorganisation of the bank's business in Africa.

This represents 68.5 percent shareholding by Barclays Bank Plc in Barclays Bank of Kenya Limited.

CMA noted that the approval for the private transfer of the securities was issued in accordance with Section 31(1A) of the Capital Markets Act and Regulation 57 (c) of the Capital Markets (Licensing Requirements) (General) Regulations 2002, and will be subject to the bank securing necessary approval from the Central Bank of Kenya.

The authority further observed that there will be no change in beneficial ownership after the proposed transfer.

Consequently, implementation of the private transfer of the securities will result in Barclays Africa Limited's direct shareholding being 68.5 percent of the issued share capital of Barclays Kenya.

The transfer reinforces the 'One Bank in Africa' strategy as the bank continues to pursue its announced strategy of combining the majority of Barclays Africa operation with those of its subsidiary Absa Group Limited where Barclays Bank Plc will remain as the majority shareholder of the combined African operations.

Under the terms of the deal, Barclays received 130 million ordinary shares in Absa worth $2.1 billion (Sh178.5 billion) to increase its holding in the South African lender from 55.5 percent to 62.3 percent.

The merger process which will be fully completed this year will see Barclays Plc combine operations in Ghana, Kenya, Botswana, Zambia, Uganda and Tanzania with Absa into an Africa unit.

Copyright © 2013 Capital FM. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.