Qatar Disposes of U.K. Bank’s Warrants
Barclays PLC (LON:BARC) Shares of value 771 million pounds ($1.24 billion) are being offloaded by Qatar Holding LLC in an attempt to dispose of its remaining warrants in the U.K. bank.
According to Bloomberg, a placement of 303.3 million shares offered to institutional investors for 244 pence to 248 pence apiece is being coordinated by Deutsche Bank AG (USA)(NYSE:DB) and Goldman Sachs Group Inc. (NYSE:GS). Based in Doha, Qatar Holding LLC is the biggest shareholder in Barclays PLC (LON:BARC) with a 6.7% stake. It has agreed that it has begun cashing in 379 million units of Barclays PLC (LON: BARC) Warrants.
Since the announcement of Barclays PLC (LON: BARC) in October 2008 of raising 7 billion pounds in capital from Abu Dhabi and Qatar sovereign wealth funds to evade a government bailout, the shares of the U.K. bank has gone up by 42%.
According to Qatar Holding Chief Executive Officer Ahmad Al-Sayed, Qatar Holding LLC would remain a supportive strategic investor to Barclays PLC (LON: BARC) due to their interest in Long term prospects in the business. In London trading the shares of Barclays PLC (LON: BARC) have moved up by 44% this year to close at 254.20 pence as in November 23 and Qatar is offering the stock at a whopping discount of 4%. But still in the UK the sale of Barclays PLC ordinary shares along with liquidation of warrants by Qatar would come at an accelerated offering.
Criminal Probe in to Barclays PLC (LON: BARC)
The good news of Qatar’s holding message of interested in the long term prospects in business comes when Barclays PLC (LON: BARC) is being probed for a criminal offense U.K. Serious Fraud Office which prosecutes bribery and white-collar crime.
The investigation is for the fees paid in 2008 to Qatar’s sovereign wealth fund to avoid a taxpayer rescue.