Barclays (LON:BARC) is to sell $2.83 billion worth of shares of its Barclays Africa Group, after more than 90 years of involvement in the region.
The British bank announced it was selling 2.2 billion pounds ($2.83 billion) worth of shares in Barclays Africa Group.
The sale would see the its stake in Barclays Africa reduced to approximately 15 percent, as the bank looks to strengthen its presence in the UK and US markets. At the height of its involvement in the subsidiary, the bank owned 62 percent.
The bank has said after the sale, it will pay £765 million to cover costs of its split from the wider bank. Alongside this, it has committed itself in providing an additional £110 million “towards the establishment of a broad-based black economic empowerment scheme”.
Barclays chief executive Jes Staley said: “Regulatory approval for the separation of Barclays and Barclays Africa is an important step forward and allows us to move closer to our goal of reducing our shareholding in Barclays Africa to the point where we can achieve regulatory deconsolidation.
“It represents a key milestone in the execution of our strategy and the restructuring of Barclays,” he said.
Last month, Staley apologised to shareholders over his involvement in a whistleblower scandal that came to light earlier this year. During the meeting for his re-election, he said:
“I feel it is important that I acknowledge to you – our shareholders – that I made a mistake in becoming involved in an issue which I should have left to the business to deal with,” he said, addressing shareholder gatherings.
“I have apologised to the board, and I would today like to apologise to you as well, for that error.”
The Financial Conduct Authority and Prudential Regulation Authority are continuing to investigate the matter, which may run the risk of him being banned from financial services by both UK and US regulators.
Shares in the bank are holding steady, up 0.10 percent as of 12.05PM (GMT).