Barclays Lowered Stake in its African Unit, Lloyds Completed MBNA Acquisition

Sarla Buch
01 Jun, 2017
New York City

Barclays sold 34% stake worth

[R]4:00 PM Frankfurt – Barclays sold 34% stake worth £2.2 billion in its African unit. FirstGroup revenues soared on strong U.S. school bus business. Johnson Matthey reported solid growth in sales and profits after restructuring program. Lloyds Banking completed the acquisition of MBNA.[/R]

In London trading, FTSE 100 index gained 22.54 or 0.3% to 7,542.07 and in Frankfurt the DAX index advanced 45.86 or 0.4% to 12,660.91.

In Paris, CAC 40 index increased 28 or 0.5% to 5,311.63.

Barclays Plc fell 0.3% to 209.35 pence after the U.K.-based financial services provider announced yesterday it lowered its stake in Barclays Africa Group Ltd from 50.1% to 16%.

The bank sold 286 million shares worth about £2.2 billion or ZAR 37,711 million as the bank seeks to focus on the U.K. and the U.S. markets.

After the disposal of the stake, the bank will hold 139 million shares in its African unit.

FirstGroup Plc declined 5.5% to 141.50 pence after the U.K.-based transportation services provider said revenues in the year ending in March jumped 8.3% from a year ago to £5.7 billion.

Net profit in the year soared 24.4% from a year ago to £112.3 million from £90.3 million and diluted earnings per share advanced to 9.2 pence from 7.5 pence.

As of March 31, its debt pile shrunk and net debt declined 8.5% to £1.29 billion.

The transport services provider said despite tough business in bus and rail segments and recent economic uncertainty in the U.K., the company posted strong results driven by the U.S. school bus business.

The underlying pre-tax profits rose 23% to £207million, on the strong performance in its First Student school bus operation in North America, which is now the group''s largest division.

Johnson Matthey Plc slipped 0.6% to 3,093 pence after the U.K.-based specialty chemicals producer reported revenues in the year ending on March 1 soared 12% from a year ago to £12 billion.

Net profit in the year surged 18.1% from a year ago to £384.6 million from £325.7 million and diluted earnings per share jumped to 200.8 pence from 165.9 pence.

Operating profit in the year advanced 14% to £513.3 million from a year ago period.

Lloyds Banking Group Plc slid 0.3% to 70.38 pence after the U.K.-based banking and financial services provider said that it has completed the acquisition consumer credit card business of MBNA Ltd from Bank of America for £1.9 billion.

Compagnie de Saint Gobain SA gained 1.4% to €50.47 after France-based flat glasses maker launched a bond offering for €750 million with 10 year maturity with an annual coupon of 1.375%.

The flat glass maker said order-book totaled €1.6 billion from over 110 investors.