Abraaj Group, the private equity firm that invests across emerging markets, is interested in buying Barclays Group’s African business, CEO Arif Naqvi said.
“It’s a very fine bank run by a very fine management team, and if the opportunity were to re-present itself, we would certainly be one of those that would be at the table,” Naqvi said in an interview at the World Economic Forum in Davos on Tuesday. The two companies aren’t currently in talks, he said.
Naqvi’s comments may signal renewed interest in bidding for a chunk of Barclays’ remaining 501% stake in the unit after the London-based bank said last March that it plans to sell down its 62% stake over two to three years.
Abraaj and a group of investors had previously planned to bid for a minority stake in Barclays Africa, people with knowledge of the discussions said last year, though those talks later faltered, people familiar said.
Other investor groups have also expressed interest in building a stake in the business. South African pension fund Public Investment Corp was looking to form a group made up of black shareholders to buy a stake, while Ex-Barclays CEO Bob Diamond had also publicly expressed interest in a potential acquisition.
The South African Reserve Bank had cautioned potential investors that it wanted owners of the country’s banks to have stability, deep pockets and long-term plans, saying in May it would look negatively on a private-equity bid.
Barclays, looking for ways to bolster its capital position, sold the first slice of its controlling stake in Barclays Africa Group in May as part of a plan to cut its holding to 20% or less. The bank sold 103,6m shares for the equivalent of about US$880m.
A spokesman for Barclays declined to comment.
Barclays Africa dropped 0,8% to R167,89 as of 1.41pm in Johannesburg.
Naqvi also said that Abraaj is raising an investment fund this year that will have a global focus as the company seeks opportunities in defensive industries such as health care and education. The firm has “a group of investors who have been supportive of us all the way through the last few years,” he said. — (c) 2017 Bloomberg LP
