16th Dec 2015 12:08
LONDON (Alliance News) - Barclays PLC on Wednesday said it expects to benefit from a GBP480.0 million pretax gain after agreeing to sell its benchmark indices business to Bloomberg LP.
Barclays Risk Analytics and Index Solutions Ltd was sold for about GBP520.0 million, the London-listed bank said in a statement, with the deal estimated to boost its CET1 ratio - a key measure of capital and financial strength - by about 10 basis points on proforma basis from the level seen at the end of September.
Barclays will retain its quantitative investment strategy index business, with calculation and maintenance of its strategy indices outsourced to Bloomberg.
"We are pleased to partner closely with Bloomberg upon completion of the transaction, including maintaining a co-branding arrangement on the benchmark indices for an initial term of five years," Chief Executive Jes Staley said in a statement.
"This transaction is further evidence of the good work we are doing in managing down our non-core assets so that shareholders can feel the full benefit of ownership of Barclays' well-performing core businesses," Staley said.
Completion is subject to various conditions, including anti-trust approval, and is expected to occur by mid-2016.
Shares in Barclays were up 0.3% at 215.50 pence on Wednesday shortly after midday.
By Samuel Agini; [email protected]; @samuelagini
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