Barclays Africa to change name to Absa Group Limited
MAR 1, 2018 — Barclays Africa Group has commenced a re-branding process that will see it acquire a new name across Africa by 2020, shedding off the British multinational bank- Barclays PLC corporate image.
In a public notice from its Johannesburg headquarters, dated May 1, Barclays Africa Group said it intends to change its name to “Absa Group Limited”
Absa Group Limited is one of South Africa’s largest financial services organisations, serving personal, commercial and corporate customers in South Africa. The Absa Group Limited (Absa) is listed on the JSE Limited
“Shareholders are advised of the intention to change the Group’s name from “Barclays Africa Group Limited” to “Absa Group Limited”, subject to regulatory and shareholders’ approval,” the lender announced on Thursday.
According to the Group CEO Maria Ramos, the proposed name change is based on the Transitional Trade Mark License Agreement, entered into between Barclays Africa Group and Barclays PLC , as part of their separation arrangement.
“The name change will be effective from the date set out in the amended registration certificate issued by the Companies and Intellectual Property Commission as contemplated in section 16(9) of the Companies Act,” the Group said in a statement.
“A special resolution to this effect will be included in the notice of annual general meeting (AGM) to be issued to shareholders of Barclays Africa Group on March 28, 2018 for the meeting on 15 May 2018,” it added.
The agreement between Barclays Africa Group and Barclays PLC as part of the separation arrangement provides that the Barclays brand may only be used in the rest of Africa up to June 6, 2020, subject to an additional two-year run off period in respect of cards.
In South Africa, the term “Member of Barclays” must be removed by June 6, 2018, subject to an additional two-year run off period in respect of cards.
The use of the name “Barclays Africa Group Limited” is permitted up to June 6, 2020, provided BAGL announce the intention to change its name on or before June 6, 2018.
Name change timetable is expected to be finalized by May 22. This is however subject to change, depending on the date of registration of the new name.
Last day to trade in old securities in respect of the name change is 29 May. Its shares are expected to trade under a new name from May 30.
Kenyan operations
Meanwhile, its Kenyan subsidiary- Barclays Bank Kenya has assured its customers of a smooth transition.
“The change will happen overtime. We will choose the most appropriate timing but I can assure you that the process will not be rushed,” managing director Jeremy Awori said, during a briefing on the changes at the Bank’s Nairobi headquarters, “We have until 2020.”
The Nairobi Securities Exchange listed lender which reported a 6.2 per cent drop in profit for the year ended December 31, said it will re-design its operating model to be more efficient, deliver growth and lower cost levels.
“Our strategic solution is to build a standalone virtual bank targeting five million customers by 2022. We would like to make it clear that we have bout three years to transition into the new brand. We assure you that we shall endevour to achieve this in a manner that doesn’t affect our customers or the business as a whole,” the bank said.
Barclays Bank of Kenya’s full year (2017) net profit dropped to Ksh6.93 billion, from Ksh7.39 billion in 2016.
LINK: https://www.exchange.co.tz/barclays-profit-drop-6-2-amid-name-change-absa-group-limited/
The management however said the bank remains strong going forward.
“Let it be known that Barclays Bank’s capital ratios remain strong and resilient , with total capital adequacy ratio at 18.0 per cent and liquidity reserve positions at 33.4 per cent against the regulatory limits of 14.5 per cent and 20 per cent,” it said.
