We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will Barclays Divest Further Stake in Africa Unit Soon?
Read MoreHide Full Article
Barclays PLC (BCS - Free Report) is awaiting regulatory approvals to further divest its stake in Barclays Africa Group. This news was first reported by Bloomberg last week.
The bank is mulling to sell 16% stake in the unit from the present 50.1%, after divesting nearly 12.2% interest last May. The sell-off had generated more than ZAR13 billion ($874.1 million) for the company (Read more: Barclays Sells 12% Stake in Africa Unit: Now What?)
Barclays is likely to generate nearly $1.5 billion from the sale of 16% stake, based on the current share price of Barclays Africa Group. Notably, following the regulatory approval for further divestiture of the stake, the company might even change the size of the sale. The stake sale is expected to be done through an accelerated book-build offering.
The sale is part of Barclays’ long-term strategy to improve efficiency and profitability. In Mar 2016, the bank announced plans to sell its stake in the Africa unit amid heightened regulatory pressure. Barclays intends to lower its stake to below 20% and keep a minority interest in the unit.
However, at present, Barclays is caught between political changes as the South African Finance Minister who had given conditional consent on the plan has been replaced. The country’s ratings cut to ‘Junk’ by the two rating agencies has complicated matters further.
All these have led to fall in Barclays Africa Group’s share price. This resulted in the company recording a goodwill impairment of £884 million against its interest in the unit in first-quarter 2017.
So, now it seems to be a wait and watch for Barclays as to when it gets the consent to further reduce its stake.
Over the last six months, shares of Barclays have rallied 2.8% underperforming a 14.6% gain for the Zacks categorized Foreign Banks industry.
Currently, Barclays carries a Zacks Rank #3 (Hold).
Grupo Financiero Galicia witnessed an upward earnings estimate revision of 7.9% for the current year, over the past 60 days. Also, over the last six months, its share price surged 50.6%.
HDFC Bank’s earnings estimates were revised 3.6% upward for the current year, in the past 60 days. The stock has risen 31.6% over the last six months.
UBS Group witnessed a rise of 5% in earnings estimate for the current year, over the past 60 days. Also, over the last six months, its share price increased 1.8%.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Will Barclays Divest Further Stake in Africa Unit Soon?
Barclays PLC (BCS - Free Report) is awaiting regulatory approvals to further divest its stake in Barclays Africa Group. This news was first reported by Bloomberg last week.
The bank is mulling to sell 16% stake in the unit from the present 50.1%, after divesting nearly 12.2% interest last May. The sell-off had generated more than ZAR13 billion ($874.1 million) for the company (Read more: Barclays Sells 12% Stake in Africa Unit: Now What?)
Barclays is likely to generate nearly $1.5 billion from the sale of 16% stake, based on the current share price of Barclays Africa Group. Notably, following the regulatory approval for further divestiture of the stake, the company might even change the size of the sale. The stake sale is expected to be done through an accelerated book-build offering.
The sale is part of Barclays’ long-term strategy to improve efficiency and profitability. In Mar 2016, the bank announced plans to sell its stake in the Africa unit amid heightened regulatory pressure. Barclays intends to lower its stake to below 20% and keep a minority interest in the unit.
However, at present, Barclays is caught between political changes as the South African Finance Minister who had given conditional consent on the plan has been replaced. The country’s ratings cut to ‘Junk’ by the two rating agencies has complicated matters further.
All these have led to fall in Barclays Africa Group’s share price. This resulted in the company recording a goodwill impairment of £884 million against its interest in the unit in first-quarter 2017.
So, now it seems to be a wait and watch for Barclays as to when it gets the consent to further reduce its stake.
Over the last six months, shares of Barclays have rallied 2.8% underperforming a 14.6% gain for the Zacks categorized Foreign Banks industry.
Currently, Barclays carries a Zacks Rank #3 (Hold).
Some better-ranked foreign banks include Grupo Financiero Galicia S.A. (GGAL - Free Report) , HDFC Bank Limited (HDB - Free Report) and UBS Group AG (UBS - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Grupo Financiero Galicia witnessed an upward earnings estimate revision of 7.9% for the current year, over the past 60 days. Also, over the last six months, its share price surged 50.6%.
HDFC Bank’s earnings estimates were revised 3.6% upward for the current year, in the past 60 days. The stock has risen 31.6% over the last six months.
UBS Group witnessed a rise of 5% in earnings estimate for the current year, over the past 60 days. Also, over the last six months, its share price increased 1.8%.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>