According to a news first reported by Skye One, Robert Diamond Junior (Bob Diamond) teamed up with Carlyle Group, the American private equity firm with $180 billion assets, to acquire 62.3% stake of Barclays Africa.

Since March 1, 2016, Barclay’s current chief executive, Jes Staley, announced that his group intends to let go of its African arm and speculations show that Atlas Mara plans to acquire the stake.

Bob Diamond, previously chief executive at Barlcays, but fired after the Libor scandal, contributed a lot to the group’s expansion in Africa. Atlas Mara which he co-founded and in which he detains a major stake, distinguished itself between 2014 and 2015 by acquiring various operations in Africa’s banking sector.

Atlas Mara has always been secretive about getting a stake in Barclays Africa saying it was handling various negotiations which it wished not to talk about. Truly, it seems almost impossible for the firm to acquire the JES-listed operation which has a capitalization of £6 billion as it, which is listed on LSE, only has a capitalization of $336 million.

Anyhow, Atlas Mara is still off the race. Bob Diamond would surely have preferred to use its own private equity firm, Atlas Merchant Capital. However, Carlyle and he are yet to confirm the news. Unlike Bob Diamond, the American private equity firm recently landed in Africa and made its first investment in the continent in 2015 only.

Moreover, Barclays’ divestment in its African subsidiary remains unclear. The group has in fact revealed that many have submitted offers to acquire stakes, but added no further details. The group should hold its annual assembly in a few days. There, shareholders, even if divestment is still on, might debate more about their dividends that Jes Staley and his staff intend to reduce.

Acquiring Barclays Africa will thus be no easy task. The group recorded positive local currency results, in 2015. More than 80% of its stake, either held or floating in stock, is controlled by institutionals, of whom a majority has diversified portfolio, with mid-term investment horizons. However, the situation is extremely complex. Since March 1, more investors have been disengaging themselves (+19.5%) and less have been interested by Barclays Africa’s shares.

Idriss Linge