Shareholders are referred to the cautionary announcement released at 07h05 (SAST) on Monday, 29 February 2016. In its results announcement today at approximately 07h00 (BST) time (09h00 SAST), Barclays PLC made the following statement regarding their shareholding in BAGL:
“Proposed selldown of BAGL
We are today announcing our intention to sell down our 62.3% interest in our African business, BAGL, over the coming two to three years, to a level which will permit us to deconsolidate it from an accounting and regulatory perspective, subject to shareholder and
regulatory approvals if and as required.
BAGL is a well-diversified business and a high quality franchise. However the stake in BAGL presents specific challenges to Barclays as owners, such as the level of capital held in respect of BAGL, the international reach of the UK Bank Levy, the GSIB buffer, and MREL/TLAC and other regulatory requirements. BAGL is today reporting a 17% return on equity for 2015 in its standalone local currency results versus the 8.7% return reported for Africa Banking in Barclays’ results.“
The BAGL Board notes that it is clear from this announcement that Barclays PLC is reducing its shareholding in BAGL due to recently introduced regulatory burdens specific and particular to Barclays PLC as a UK headquartered and globally significant financial institution. These regulations significantly decrease BAGL’s standalone returns for Barclays PLC.
We will now actively engage with Barclays PLC and our regulators to ensure that this process has an appropriate and satisfactory outcome for all our stakeholders.
The cautionary announcement dated 29 February 2016 is hereby withdrawn.