When the deal is completed, Barclays will hold 62.3% of Barclays Africa Group through the issue of 129.5 million ordinary shares by Absa.
Absa and Barclays in December 2012 announced plans to combine their operations in Africa.
Absa is acquiring the operations of Barclays in nine African countries including Ghana where it will take over 100% of the bank’s operation in the country.
According to Absa, the final hurdle for the deal has been cleared in most of the countries where it wants to combine operations with Barclays with regulators approving the transaction.
“The necessary conditions have been fulfilled (or, where appropriate, waived) to conclude the combination of Barclays Africa and Absa, including regulatory approvals in Botswana, Ghana, Kenya, Mauritius, Seychelles, South Africa, Tanzania, Uganda and Zambia,” Absa said in a statement July 22, 2013.
According to officials, Absa which will be renamed Barclays Africa Limited, will hold a significant majority of “Barclays’ ownership interests in banking operations in Botswana (67.8%), Ghana (100%), Kenya (68.5%), Mauritius (100%), Seychelles (99.8%), Tanzania (100%), Uganda (100%) and Zambia (100%).
The transaction is expected to be completed July 31, 2013.
By Ekow Quandize