FD backs Barclays sell-off

Barclays’ group FD has praised a decision to sell off a major arm of the
business to a US company.

As the banking heavyweight prepared to offload the UK and Germany arms of its
vendor finance businesses to finance company CIT Group Inc, Barclays group FD
Naguib Kheraj, said: ‘This transaction leaves Barclays Asset & Sales Finance
well positioned for its future development.

‘Significant investment will be focused on its core asset and sales finance
business including the ongoing expansion of its successful direct leasing
business. The future strategy of the vendor finance businesses is now best
pursued within a specialised leading global provider of asset finance

The gross assets of the UK and German operations, which provide asset finance
to customers of manufacturers and suppliers in the industrial equipment and
technology markets came to approximately £1.1bn as at 30 June, 2006, about 12%
Barclays’ total gross assets.

Almost 60% of the assets to be sold came from UK activities, with the balance
in Germany.

The completion of the sale is depends on clearance from the relevant
regulatory authorities and is expected to close at the end of 2006.

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