Activist group Jubilee South Africa said in a statement on Friday it is opposing the Barclays bid for Absa until the British bank apologises for supporting the apartheid regime.
Barclays, Britain’s third-largest bank, said this week it is considering buying a 60% stake in Absa at a cost of R32-billion.
Jubilee said Barclays should make reparations to those who suffered under apartheid because of the bank’s support for the regime. It said it will also oppose the transaction until the Khulumani vs Barclays lawsuit in the United States is completely resolved.
Jubilee said it has a “three-phase” plan to mobilise its supporters against the transaction, which will involve unspecified action in South Africa, Africa and other countries, including Britain.
Barclays was not immediately available for comment on Friday.
“The Barclays bid for Absa is an insult to the people of South Africa, especially to those who suffered under the illegitimate apartheid regime,” said the statement.
“At present, Barclays is the lead defendant in a lawsuit brought in the United States by 87 South Africans (represented by the Khulumani support group and other civil society organisations) who had been subjected to gross human rights violations during apartheid.”
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The Jubilee statement said the lawsuit charges Barclays and 22 other foreign companies with aiding and abetting the apartheid regime, in the knowledge that their support would be used to suppress the South African population through violent measures.
The lawsuit was lodged in the Court of Appeals for the Second Circuit, which covers New York, on April 27 this year.
The statement said Barclays also chose not to appear before the Truth and Reconciliation Commission to disclose its dealings with the apartheid regime, and seek amnesty.
Barclays, which flagged its interest in Absa several months ago, said this week that the two banks have been in “extensive discussions” since April 4 about Barclays purchasing the stake for R79 a share. Investors in the Johannesburg-based bank will also get a dividend of about R1,80 a share, the companies said.
Barclays first announced plans to buy a majority stake in Absa last September. Absa is South Africa’s fourth-biggest bank and has 31 000 employees.
Despite the reported haggling about a price, economist and analyst Dr Iraj Abedian believes there is little chance of the transaction being scuppered.
“It’s just too good a deal to walk away from,” he told a television interviewer recently, adding that it is usual for minorities to try to hold out for a better price.
“It’s all part of the posturing,” said Abedian, who heads up the Pan African Advisory Group.