ABN - Barclays (LSE:BARC) PLC has agreed to pay US$988 million to its African subsidiary (JSE:BGA) in order to fund the its move away from the continent.
The British-based bank announced last year its intentions to move out of Africa so it could raise cash to reduce its capital burden.
When the deal is completed Barclays Africa, Africa’s third largest bank by market value, will be free to manage its own business on the continent.
The split agreement is also eventually expected to involve Barclays cutting its stake in the African operation to below 50%.
Barclays Africa said the money would be spent on technology, rebranding and separation related projects.
“It is a good outcome that enables us to complete the separation, and to provide continuity and improved service for our customers,” said chief executive Maria Ramos.
“Separation has a number of implications for our business. It gives us the opportunity to unlock the potential to do things differently and build energy and momentum for our future as a pan-African organisation.”