His PCP Gulf Invest 3 Ltd. liquidated its 758.4 million Barclays shares as of June 20, according to a filing last month from the London-based bank. The stock fell 4.4 percent in London trading that day to 288.1 pence.
Barclays raised 5.3 billion pounds ($8.1 billion) from Qatar and Abu Dhabi in October 2008 as it sought to avoid taking funds from the U.K. government at the peak of the financial crisis. In 2010, PCP converted the warrants it had acquired into stock at about 197.8 pence a share. It then bought protection against any loss in value in its 6.3 percent shareholding from Nomura Holdings Inc.
“He’s made quite a lot of money out of it, so I’d think that’s one reason he’s sold out,” Gary Greenwood, an analyst at Shore Capital in Liverpool, England, who recommends buying the stock, said by phone today. “The only concern would be he’s a big shareholder and the stock’s trading at a discount to book value.” Barclays trades at a 22 percent discount to book value.
The sale explains some of the lender’s performance in June, said Sandy Chen, an analyst at Cenkos Securities Plc in London who rates the lender a sell. Barclays was the second-worst performer in the six-member FTSE 350 Banks Index that month, losing 13 percent, after Royal Bank of Scotland Group Plc, which declined 19 percent.
“The triggering event for this notification is the termination and settlement of hedging transactions over PCP3’s total holding,” the company said in the June 24 filing. “There are now no shares and no voting rights in Barclays held, or deemed to be held, by PCP3.”
Barclays rose 0.9 percent to 320 pence today, extending its gain this year to 22 percent. Barclays declined to comment. The Financial Times reported the sale yesterday.
The deal doesn’t affect the bank’s outlook or earnings, said Ian Gordon, an analyst at Investec Plc in London with a buy rating on Barclays. “They were simply an investor who put up some money when others were unwilling to,” he said.
How much profit Mansour made from selling this stake is difficult to say without knowing what other hedging deals may be in place, said Gordon.
Had the stake been all in shares, he could have made as much as 685 million pounds based on June 20’s closing price of 288.1 pence and a warrant price of 197.8 pence.
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