Ex-Barclays chief eyes lender’s African unit
Barclays Bank Managing Director Jeremy Awori speaks during the launch of a mobile card payment solution on February 24,2016. A company set up by former Barclays head Bob Diamond on Tuesday confirmed that it was preparing to bid for the UK-based bank’s African operations. PHOTO | SALATON NJAU | NATION MEDIA GROUP
What you need to know:
- A company set up by former Barclays head Bob Diamond on Tuesday confirmed that it was preparing to bid for the UK-based bank’s African operations.
- Mr Diamond’s involvement in the consortium, which the Guardian and Financial Times newspapers say is thought to include private equity firm Carlyle, was revealed in a stock market announcement by the London-listed African based bank Atlas Mara, which Mr Diamond formed in 2012 with Ashish Thakkar, an entrepreneur.
- Atlas Mara is a financial services holding company created to undertake acquisition of target banks in Africa with the objective of becoming a leading financial services group in the continent.
A company set up by former Barclays head Bob Diamond on Tuesday confirmed that it was preparing to bid for the UK-based bank’s African operations.
Mr Diamond’s involvement in the consortium, which the Guardian and Financial Times newspapers say is thought to include private equity firm Carlyle, was revealed in a stock market announcement by the London-listed African based bank Atlas Mara, which Mr Diamond formed in 2012 with Ashish Thakkar, an entrepreneur.
Atlas Mara is a financial services holding company created to undertake acquisition of target banks in Africa with the objective of becoming a leading financial services group in the continent.
Barclays has an extensive presence in the East Africa and the Times newspaper said recently that “among the countries he (Mr Diamond) may especially covet are Kenya, Ghana and Uganda.”
AFRICAN OPERATIONS
Barclays has around 769,000 customers in Kenya, its second largest market, 561,000 in Tanzania, its third largest and 136,000 in Uganda, its third smallest.
Barclays Africa generates about 20 per cent of its profits from its operations outside of South Africa, which include Kenya, Tanzania, Uganda, Botswana, Mauritius and Zambia.
The statement put out by Atlas Mara on Tuesday said: “In response to recent press reports regarding interest in purchasing Barclays Plc’s 62.3 per cent stake in Barclays Africa Group Limited, Atlas Mara Limited acknowledges that it has had discussions with a consortium of investors that is exploring an acquisition of Barclays’ stake in Barclays Africa.
“Members of the consortium include Atlas Merchant Capital, founded by Bob Diamond, and the Mara Group, founded by Ashish J. Thakkar.
Atlas Mara’s board of directors supports the exploration of the potential combination, given the expected positive impact on accelerating the company’s strategy to build sub-Saharan Africa’s premier financial institution.”
Barclays said last months said it wanted to sell its South African arm to help reduce the complexity of the group and to save capital.
Barclays African operations are currently valued at around $3.6 billion. Atlas Mara, which has operations in seven African countries, also indicated that it expects to be taken over by the consortium in the event that a deal is struck.
