Shareholders OK Absa stake sale

JOHANNESBURG – Shareholders of insurer Sanlam, the biggest stakeholder in South Africa’s largest consumer bank Absa, gave permission yesterday for the insurance firm to sell its Absa stake to Britain’s Barclays.

Sanlam said in a statement that 99,17 per cent of its shareholders had approved selling its around 19 per cent stake in Absa to Barclays. The UK banking group said last month it would pay 33 billion rand for a 60 per cent controlling shareholding of Absa.Absa shareholders are due to meet on June 13 to vote on the transaction, which will mark the return of Barclays to retail banking in South Africa after anti-apartheid protests forced the group to exit in 1986.It will be the biggest foreign direct investment in South Africa yet.Earlier this week, South Africa’s state-owned pension fund manager the Public Investment Corporation (PIC), which holds a 10 per cent stake in Absa, also said it supported the deal.Sanlam said in May that selling 60 per cent of its Absa stake could cut core earnings by 22 per cent but a source familiar with the situation said the group hoped to offset the loss of income by sales of insurance through Absa’s branch network.- Nampa-ReutersThe UK banking group said last month it would pay 33 billion rand for a 60 per cent controlling shareholding of Absa.Absa shareholders are due to meet on June 13 to vote on the transaction, which will mark the return of Barclays to retail banking in South Africa after anti-apartheid protests forced the group to exit in 1986.It will be the biggest foreign direct investment in South Africa yet.Earlier this week, South Africa’s state-owned pension fund manager the Public Investment Corporation (PIC), which holds a 10 per cent stake in Absa, also said it supported the deal.Sanlam said in May that selling 60 per cent of its Absa stake could cut core earnings by 22 per cent but a source familiar with the situation said the group hoped to offset the loss of income by sales of insurance through Absa’s branch network.- Nampa-Reuters