Webber Wentzel and Linklaters have advised Absa on the proposed combination of the majority of Barclays African operations with Absa Group in line with their “One Bank in Africa” strategy.
This is the first deal Webber Wentzel and Linklaters have announced they have acted together on since signing their collaborative alliance earlier this week.
The scope of the transaction includes Barclays interests in Botswana, Ghana, Kenya, Mauritius, Seychelles, Tanzania, Uganda and Zambia as well as the Barclays Africa Regional Office in South Africa. Under the proposed transaction Absa Group will acquire 100% of Barclays Africa Limited, the holding company of the Barclays African portfolio, for a consideration of 129,540,636 Absa Group ordinary shares, representing a value of R18.3 billion. As a result, Barclays’ stake in Absa Group will increase from 55.5% to 62.3%.
As part of the transaction Absa Group will be renamed “Barclays Africa Group Limited” to reflect its greater portfolio of African business and it is Barclays intention that Barclays Africa Group Limited will be the platform for the management and growth of its business in Africa going forward. The transaction is expected to complete in the first half of 2013, subject to fulfilment of the conditions precedent including Absa Group shareholder approval.
Webber Wentzel and Linklaters also acted together on the original investment by Barclays in Absa in 2005.
Webber Wentzel’s team was led by M&A partner Sarah Adcock, who said:
“This important deal is a timely example of the work that Webber Wentzel and Linklaters have already been successfully collaborating on for clients even before our alliance which was announced earlier this week. Our complementary teams offer clients an enhanced market-leading experience to help navigate their key Africa business challenges.”
Linklaters’ team was led by corporate partner Charlie Jacobs, who said:
“We look forward to closing out this deal and working on many other deals together. This is further evidence of both firms working together on high profile deals in the financial institutions sector. We acted jointly for ICBC when it acquired its 20% stake in Standard Bank.”
The joint team was led by Sarah Adcock (partner) and Ziyanda Ntshona (partner) for Webber Wentzel and Charlie Jacobs (partner) and Tracey Lochhead (managing associate) for Linklaters.
