, NAIROBI, Kenya, Jul 22 – Regulators have approved the acquisition of the largest consumer bank in South Africa, Absa Group, by Barclays’ Group African business to be effective July 31.
In the deal, Barclays will increase its stake in Absa group to 62.3 percent through the issue of 129.5 million shares by Absa representing a value of approximately Sh162 billion.
This will be followed by Absa Group changing its name to Barclays Africa Group Limited on August 2 this year.
However, the Absa brand will still be used in South Africa only.
Barclays Bank Kenya Managing Director Jeremy Awori said the necessary conditions had been fulfilled to conclude the merger including the regulatory approvals in Kenya, Botswana, Ghana, Mauritius, Seychelles, South Africa, Tanzania, Uganda and Zambia.
“We are excited about the opportunities that this development brings to the growth of our business in the market, particularly the ability for us to offer our clients and customers the best of Barclays and Absa services and products in Kenya,” Awori commented.
The listing of Barclays Bank Kenya on the Nairobi Securities Exchange will maintained while the minority shares will not be affected.
“As we previously announced, Egypt and Zimbabwe are not included in this transaction but they remain an integral part of our African business and we will continue to run them on an operational basis, “Absa Group CEO Maria Ramos said.
The deal, first announced in 2012, was delayed by the complexities of regulatory approval in Botswana, Ghana, Kenya, Mauritius, the Seychelles, South Africa, Tanzania, Uganda and Zambia.
The group will be listed on the JSE as Barclays Africa.