Barclays plc has agreed to pay a £765m “divorce settlement” to subsidiary Barclays Africa, in which it is selling down its majority interest.
The payout is expected to meaningfully alleviate the financial pressure on the African subsidiary caused by the separation.
Barclays Africa CEO Maria Ramos has planned to spend some of the money from the “divorce settlement” on rebranding the group and investing in its operations outside South Africa.
The two groups have agreed on a £765m separation fee to be paid by Barclays plc to allow Barclays Africa to cover the costs of investing in technology, rebranding, the termination of service level agreements between the two companies, and other separation expenses.
The largest share of the amount, is set aside for technology, rebranding and related projects. “The agreement now is we have three years to change the brand,” Ramos said after the release of the group’s results for the year to December 2016. “We have to change the brand from Barclays.”