Monday, May 09, 2005
More for del Messier Interview re Barclays
Barclays finally lands Absa
by Brian Cattell in London Posted 06:28 EST, 9, May 2005
British bank Barclays plc has agreed to pay 33 billion rand ($5.5 billion) to acquire South Africa's Absa Group Ltd. in a deal that marks the largest foreign investment into the country and makes Barclays the biggest bank in Africa.
The transaction brings to an end a tortuous eight months of talks during which Barclays struggled to win the backing of Absa's largest shareholders and was forced to increase the size of its offer.
Barclays will acquire a 60% stake in Absa in order to leave some of the bank's shares in free float. The British institution will pay R82.5 per Absa share plus a dividend of R2 per share.
The effective offer of R84.5 per Absa share represents an increase on the R80.8 per share, including dividend, that Barclays said April 25 it was prepared to pay.
After announcing two weeks ago that it was in discussions with Absa shareholders about their attitude toward its offer, Barclays said Monday, May 9, that it has now received written backing for the new, higher offer from 63% of them. The acquisition of Absa, which is South Africa's largest retail lender, brings Barclays back to the country's consumer banking sector after an absence of nearly 20 years. The British bank, which continued with corporate finance operations in South Africa, withdrew from retail banking activities in the country in 1986 amid international condemnation of the apartheid regime. Barclays' advisers are J.P. Morgan and Barclays Capital, with South African law firm Deneys Reitz Inc. providing counsel. Goldman Sachs International, Merrill Lynch International and Absa Corporate and Merchant Bank are supplying Absa with financial advice. Webber Wentzel Bowens is the South African bank's legal adviser.
©Copyright 2005, The Deal, LLC.
by Brian Cattell in London Posted 06:28 EST, 9, May 2005
British bank Barclays plc has agreed to pay 33 billion rand ($5.5 billion) to acquire South Africa's Absa Group Ltd. in a deal that marks the largest foreign investment into the country and makes Barclays the biggest bank in Africa.
The transaction brings to an end a tortuous eight months of talks during which Barclays struggled to win the backing of Absa's largest shareholders and was forced to increase the size of its offer.
Barclays will acquire a 60% stake in Absa in order to leave some of the bank's shares in free float. The British institution will pay R82.5 per Absa share plus a dividend of R2 per share.
The effective offer of R84.5 per Absa share represents an increase on the R80.8 per share, including dividend, that Barclays said April 25 it was prepared to pay.
After announcing two weeks ago that it was in discussions with Absa shareholders about their attitude toward its offer, Barclays said Monday, May 9, that it has now received written backing for the new, higher offer from 63% of them. The acquisition of Absa, which is South Africa's largest retail lender, brings Barclays back to the country's consumer banking sector after an absence of nearly 20 years. The British bank, which continued with corporate finance operations in South Africa, withdrew from retail banking activities in the country in 1986 amid international condemnation of the apartheid regime. Barclays' advisers are J.P. Morgan and Barclays Capital, with South African law firm Deneys Reitz Inc. providing counsel. Goldman Sachs International, Merrill Lynch International and Absa Corporate and Merchant Bank are supplying Absa with financial advice. Webber Wentzel Bowens is the South African bank's legal adviser.
©Copyright 2005, The Deal, LLC.
# posted by Tom @ 11:32 AM 
