Sanlam, South Africa’s second-largest life assurer, has finalised the sale of its entire 21,3% stake in banking group Absa to the United Kingdom’s Barclays Bank for R10,3-billion, the company said in a statement on Tuesday.
The group sold all of its 124,3-million Absa shares for R82,50 per share in the transaction, which closed on Monday.
Sanlam now holds capital totalling approximately R7-billion that it has identified as being “excess” of its requirements. Of this, it has already announced it will use R4-billion to buy back its own shares.
Speculation is widespread that much of the remaining R3-billion will be used to buy out rival life assure African Life Investments, in which it already holds a 28% stake.
With the acquisition of Absa shares from Sanlam, Barclays now holds almost 54% of the banking group as it prepares to take control of operations from Wednesday. It plans to continue buying up more Absa shares in the open market to reach its ultimate target of 60% eventually. — I-Net Bridge