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Barclays shares jump as activist Bramson buys stake

Activist investor Edward Bramson buys 5% stake in bank, including £580 million holding for his Sherborne Investors C fund.

Barclays shares jump as activist Bramson buys stake

Shares in Barclays (BARC) have jumped after activist investor Edward Bramson's acquired a 5% stake in the bank.

In a statement posted on the London Stock Exchange this morning, the bank confirmed the activist's move. 'Barclays notes that Sherborne controlled entities have acquired voting rights over 5.16% of its issued share capital,' it said.

'As with all its shareholders, Barclays will continue to engage with Sherborne, and welcomes them as a shareholder.' 

Bramson's stake including a £580 million holding for his Sherborne Investors C (SIGC) fund.

'Sherborne Investors has advised the company that its turnaround assumptions indicate a potential return on the investment in line with Sherborne Investors' customary return objectives,' a statement from the vehicle read. 

The purchase comes after US hedge fund Tiger Global bought a 2.5% stake in Barclays at the start of the year.

Shares in Barclays jumped 3.8% to 217.5p on rhe news.

Sherborne has forced a number of corporate restructures in recent years, including at fund firm F&C Asset Management and private equity trust Electra (ELTA ).

According to the Financial Times, Bramson (pictured) has met with the Barclays board to discuss its full-year numbers. 

Barclays released its results in February, showing a 10% increase in 2017 core profit to £3.5 billion. 

However, this failed to drag Barclays back into the black with exceptional costs on the sale of its Africa division and tax changes causing a £1.9 billion loss.

Pretax profit was up from £3.2 billion in the prior year but remained well short of the £4.7 billion analysts had forecast. On a post-tax basis the business last year reported a £1.6 billion profit.

The bank has also promised to reinstate the dividend it cancelled two years ago.  

In a statement accompanying the results, chief executive Jes Staley said: ‘2017 was a year of considerable progress for Barclays.

'While we still have a number of legacy conduct issues to address, I am confident in the capacity of this business to generate excess capital going forward, and it remains our intention over time to return a greater proportion of that excess capital to shareholders through dividends and other means of capital distribution, including buybacks.'

3 comments so far. Why not have your say?

david zerihan

Mar 19, 2018 at 13:32

good buy more Barclays shares

report this

Andrew Stevenson

Mar 19, 2018 at 15:55

"and other means of capital distribution, including buybacks."

Buybacks ? Thanks a lot. Great for increasing the share price for people dumping their shares (who no doubt are saying 'good riddance'). Great for the share price related multi-million pound bonus payments for the directors. Useless for the idiots (long term investors) who continue to hold this disastrous investment.

report this

Hank Elvis Dobbs (texan)

Mar 19, 2018 at 18:45

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