Barclays is believed to have tabled a GBP2.7 billion offer for a 60% share in Absa, but shareholders in the springbok bank appear to be holding out for more. The UK bank has been working towards reentering the South African market 20 years on from anti-apartheid protestors forcing it out.
Local insurance company and the largest shareholder in Absa, Sanlam, supports Barclays’ offer, but many other investors, like Invesco, do not agree.
They have to go back and consider whether they want to pay a little bit more to make the transaction happen or whether they decide they don’t want to, commented Chris Steward, a fund manager at Investec, in an interview with The Guardian.
The board of Absa has yet to publicly recommend Barclays’ offer to its shareholders, while the UK bank, faced with continued obstruction, is yet to decide whether to even formalize its bid by seeking regulatory approval. Either way, Barclays is believed to have slapped a 14 day deadline on agreeing a deal.
