Barclays PLC BCS is reportedly mulling the sale of a stake in the U.K. merchants' payment processing unit as the bank is seeking a partner to boost the business.
The business could be worth at least £2 billion ($2.5 billion), based on an EBITDA of about £300 million and similar deals, Reuters reported, citing statements from four people familiar with the matter.
For 2023, Barclays expects a loan loss rate of 50-60 bps in 2023 and a return on tangible equity of above 10%. At amortized cost, loans and advances at the company stood at £401.4 billion, and deposits were £554.7 billion at the end of the second quarter of 2023.
The early-stage discussions of a potential divestment are part of Barclays' review of its global payment activities spanning merchant acquiring and credit card services, the report noted.
The report added the financial behemoth is eyeing a partner with the strategic "know-how" to grow the business and raise capital.
The company has not decided how significant a stake it might divest.
"We don't comment on speculation. Our businesses continue to perform well and growing our global payments business is a priority for us," Barclays told Reuters.
BCS Price Action: Barclays shares closed Friday higher by 0.53% to $7.55.
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