Qatar Reduces Stake in Barclays Through £510 Million Share Sale

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Qatar’s sovereign wealth fund, Qatar Holding, a subsidiary of the Qatar Investment Authority, is reducing its stake in Barclays, a move that comes amid increasing pressure on the UK bank to revamp its strategy and enhance its performance. The sale involves nearly 362 million shares, valued at approximately £510 million, with the Qatar Investment Authority expected to lower its stake from 5.3% to 2.9%. Barclays’ CEO, CS Venkatakrishnan, faces investor expectations for a strategic overhaul announcement in February, with hopes of a reduced reliance on investment banking and increased capital return to shareholders.

Barclays has experienced a decline of over 12% in its shares this year, trading close to pandemic-related lows. The bank’s valuation is considered one of the lowest among major global banks. The impending restructuring, code-named Minerva, is rumored to involve dropping thousands of clients at the investment bank to cut costs by £1 billion and boost profits. The Qatar Investment Authority, a long-time Barclays shareholder, played a significant role in the bank’s 2008 emergency cash raise of over £11 billion, which later led to legal scrutiny and fines for Barclays.

The Financial Conduct Authority fined Barclays £50 million last year for failing to disclose arrangements related to the fundraising, despite the Serious Fraud Office’s case being dismissed in 2018. Qatar Holding has been gradually reducing its Barclays stake, trimming 5% last year and 10% in 2021. The recent stock sale is the largest in several years. Barclays and the Qatar Investment Authority declined to comment on the matter.