HomeBusiness DigestBarclays' Absa takeover approved

Barclays’ Absa takeover approved

SOUTH Africa’s High Court approved yesterday the means by which Britain’s Barclays Plc aims to acquire a majority stake in banking group Absa.

Helvetica, sans-serif”>The court approved the scheme of arrangement for the R33 billion (US$4,83 billion) deal, paving the way for the transaction to be completed on July 27.

The bid, which took eight months to put together, already has shareholder and regulatory approval.

“The scheme has been ratified,” an Absa spokesman said.

Earlier High Court judge Mahomed Jajbhay dismissed apartheid reparations group Jubilee South Africa’s application for an injunction to halt the transaction.

The judge ruled that Jubilee South Africa had no interest in the matter and had failed to show the group would be prejudiced if the matter went ahead.

“Absa (shareholder) members will suffer substantial prejudice if the matter is not heard this week,” the judge said before ratifying the transaction.

Jubilee South Africa is a small local pressure group which, together with other local groups, has filed law suits against various multinationals in the United States for compensations to be paid to victims of apartheid. The South African government has spoken out against these lawsuits.

Absa shares were 0,06% higher at R82,50, outperforming a 1,2% weaker JSE Securities Exchange banking sector. – Reuter.

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