Barclays’ Spanish sell-off gets positive response despite loss
BARCLAYS was given a generally positive response from analysts and shareholders yesterday to the sale of most of its Spanish arm, as the bank pursues a major restructuring including disposal of non-core assets.
Spain’s third largest bank Caixabank will pay €800m for parts of Barclays Spanish business, but Barclays revealed it will make a £500m loss on the sale.
Analysts yesterday were broadly favourable to the deal. Espirito Santo said: “While we are slightly disappointed by the sale price, the acceleration of the disposal of non-core should be taken well.”
Deutsche Bank analysts said: “Some might have expected a higher valuation for the business, but given shape of the book and field of buyers, we think the deal is positive.”
Meanwhile Investec analysts said “we were unconvinced of a pressing need to exit Spain at a material loss”, but added “most investors disagree with us, preferring accelerated delivery of non-core run-off”.
Shareholders echoed this, with one institutional investor telling CityAM that the sell off represented a “small positive” for Barclays.