IPIC plans to dispose of Barclays shares

| June 2, 2009 | 0 Comments

Abu Dhabi firm, International Petroleum Investment Company (IPIC), said it is planning to sell part or all its interests in British bank, Barclays, the equivalent of 1.3 billion shares.

Last year, Barclays raised £7 billion from investors in Qatar and Abu Dhabi in order to strengthen its balance sheet and meant that it could avoid having to seek Government assistance.

Since the investments were made by the Middle East investors, IPIC has doubled its investment since Barclays have experienced a surge in its share price.

IPIC managing director, Khadem Al Qubaisi, said it plans to use the funds from the sale to “invest in hydrocarbon-related opportunities.”

John Varley, Group Chief Executive of Barclays, said, “In the period since IPIC and the Government of Abu Dhabi took a position in Barclays in 2008 through their purchase of Mandatorily Convertible Notes (MCNs) and Reserve Capital Instruments (RCIs), we have been able to broaden our strategic and commercial relationship, and we look forward to developing this further going forward.”

In related news, it was reported last month that Barclays is in negotiations to sell its asset management division, Barclays Global Investors (BGI) - which owns the iShares fund management operation.

Barclays recently reported a 15% rise in pre-tax profits for the first three months of the year despite the financial maelstrom.

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