United Kingdom banking group Barclays on Tuesday extended its offer for South African banking group Absa by two weeks in order to allow more time to fulfill the remaining conditions to complete the deal.
In connection with this, Absa on Tuesday applied to the High Court of South Africa to postpone by two weeks the hearing to sanction the scheme proposed by Barclays to acquire 32% of all Absa ordinary shares. The application was granted.
The scheme, one of two inter-conditional parts of Barclays proposed acquisition of up to 60% of Absa, requires Absa ordinary shareholders to dispose of 32% of their Absa shares to Barclays.
At a meeting of Absa shareholders last week, the recommendation of this scheme by Absa’s board was accepted by 99,01% of all shareholders present in person or by proxy.
The second part of Barclays acquisition is the ”recommended offer” to ordinary shareholders to acquire an additional 28% of their shares.
Barclays is offering R82,50 per share, payable in cash, representing a total consideration for the scheme and partial offer of R33-billion.
In order for the scheme and the offer to become effective, Barclays requires shareholders to tender such number of shares through the recommended offer that Barclays will hold 56,5% of all Absa ordinary shares. As this condition had not been fulfilled prior to the date of the scheduled court hearing, Absa and Barclays sought to extend the offer by two weeks to allow for its fulfillment.
The court confirmed that the hearing to sanction the scheme will now be on 5 July.
At present Barclays holds shares and has received tenders and commitments to tender which, when aggregated with shares to be acquired under the scheme, would amount to 51,1% of all Absa ordinary shares.
‘Phansi Barclays apartheid profiteer’
Meanwhile, members of Jubilee South Africa protested on Tuesday outside the ourt.
”Phansi Barclays economic terrorist, Phansi. Phansi Barclays apartheid profiteer, Phansi,” chanted the protestors.
Campaign co-ordinator Makoma Lekalakala, who led the group’s demonstrations, said: ”We will continue to protest against the takeover even though the court is going to give the go ahead for the merger today [Tuesday].”
”It is morally and ethically wrong for the government through its policies and regulations to allow Barclays to reinvest in the country especially after their history of aiding and abetting the apartheid regime.”
Another demonstrator, Jabo Molomela said Barclays has blood on its hands and they are not wanted here.
The small group of demonstrators sang and danced outside the court and also said Barclays should return to ”colonial Britain”. ‒ I-Net Bridge, Sapa