|Barclays To Dispose Of BlackRock Shares|
|May 21, 2012 14:58 (CET)|
Barclays plans to sell its entire stake in BlackRock, parent company of Europe’s largest ETF issuer iShares, it announced today.
The British bank said it will dispose of its 19.6 percent shareholding via an offering and buyback that will see the US asset manager buy back shares worth up toUS$1 billion.
Barclays acquired the stock back in 2009 when it sold Barclays Global Investors to BlackRock for US$13.5 billion.
At the time of the sale, it received BlackRock shares worth US$6.9 billion (£4.4 million). Last September, however, the value of the stake was written down to a fair value of £3.4 billion, although a rebound in share prices has seen the value of the stake increase back up to £3.8 billion since then.
A preliminary prospectus relating to the offering was filed by BlackRock with the US Securities and Exchange Commission today.