Barclays responds to IPIC divestment

2nd Jun 2009 07:02

Barclays said it hopes to expand its strategic and commercial relationship with the International Petroleum Investment Company (IPIC) despite IPIC’s professed intention to reduce its stake in the UK bank.IPIC has announced plans to offload 1,305m Barclays shares for which its entire holding of Mandatorily Convertible Notes (MCNs) are exchangeable.IPIC continues to hold warrants convertible into a further 758m Barclays shares exercisable at a price of 197.775p per share.‘In the period since IPIC and the government of Abu Dhabi took a position in Barclays in 2008 through their purchase of MCNs and RCIs we have been able to broaden our strategic and commercial relationship, and we look forward to developing this further going forward,’ said Barclays chief executive, John Varley.‘The decision to dispose of some of its interests in Barclays reflects the focus of IPIC's long-term investment strategy on hydrocarbon-related opportunities.,’ said HE Khadem Al Qubaisi, managing director of IPIC, adding that the sale did not represent a lack of faith in Barclays, its management or current strategy.