barclays-sells-ishares-business

Barclays sells iShares business

The UK bank realises $4.4 billion from the sale of its ETF business to CVC, but has to provide debt financing of $3.1 billion to secure the deal.

Barclays has sold its iShares business to private equity firm CVC Capital Partners for $4.4 billion, continuing its efforts to shore up its capital base. But, reflecting Barclays' eagerness to close a deal as well as the fact that private equity firms are only willing to do deals if leverage is secured, the UK bank will provide $3.1 billion of debt financing to CVC to effect the deal.

Barclays will book a net gain on the sale of $2.2 billion, taking into consideration goodwill of $1.4 billion, from a business it has mostly grown organically over the past five years. Including this gain and the capital it raised primarily from Middle Eastern investors in...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222