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Barclays Africa May Retain Name Despite London-Based Parent Exit

Barclays Africa Group could keep its name in spite of the exit of its London-based parent firm, Barclays Plc, from the continent, Daily Country reported.

According Jeremy Awori, Barclay Bank Kenya chief executive, the African arm of the financial institution will bargain to maintain the name in an upcoming divestment by the financial institution from the continent, to keep the a good reputation the name has actually created.

“With the planned deconsolidation it (Barclays Plc) did not say it would conclusively eliminate the brand. It depends on who they offer to, which is currently unknown,” Jeremy Awori, Barclays Bank of Kenya CEO told reporter on Wednesday.

He added that the change in name in the two to three year period leading to its sell was not possible since it was legally protected.

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Awori told said that there was a licensing agreement between Barclays Africa and its parent bank that bars them from dispensing of the brand before the sale is completed.

The name change is one of the bank’s key issues under discussion before and after its sale.

Barclays Plc owns 62.3 percent of Barclays Africa Group and confirmed it plans to sell down its stake in the Africa unit to below 20 percent in the next two to three years.

The bank recently detailed how its complex sell-down plan would pan out and has hired JPMorgan and Citi to help with the sale-off, would also have to provide ‘exit assistance’  to its African business for up to three years after the deal is done.

Barclays Africa Group Limited is one of the largest banks by customer numbers on the continent and is partly owned by South Africa’s Absa.

It is one of the biggest name brands on the continent and experts consider it the major reason why the bank has stated its desire to retain the name.

At least seven international and local financial institutions are interested in buying a stake in the bank, either in part or as whole.

 

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Written by PH

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